Assam's Debt Soars Over 107% in Four Years: CAG Report
The Assam government's debt surged by more than 107% from 2018-19 to 2022-23, according to a CAG report. The report also revealed a decline in capital expenditure by over 20% in FY'23. The increasing debt is primarily due to higher borrowing, which could lead to added pressure on interest payments in coming years.
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- India
The Assam government's outstanding debt has increased by an alarming 107% from 2018-19 to 2022-23, according to a report by the Comptroller and Auditor General (CAG) released on Friday.
The report, which detailed the fiscal situation for 2022-23, was tabled in the state assembly. It highlighted that the state's capital expenditure dropped by over 20% in FY'23 compared to the previous year.
The CAG noted that the state's outstanding debt surged from Rs 59,425.61 crore in 2018-19 to Rs 1,23,214.80 crore in 2022-23, with the liability growth rate increasing from 20.60% to 23.32% over these years. This rise is attributed to the increased borrowing from the open market. Public debt now comprises 81.98% of total borrowing, growing by 26.15% in 2022-23 alone. The report warns of increased pressure on interest payments due to this surge.
(With inputs from agencies.)