Soaring Debt Weighs on Jammu and Kashmir's Economy

Jammu and Kashmir's total debt stands at Rs 1.25 lakh crore, impacting 52% of its GSDP. A significant part of this debt includes loans from the Reserve Bank of India and the Union Territory's provident fund. The debt's proportion in GSDP has risen significantly over the past decade.

Jammu and Kashmir's government has announced that the Union Territory's total debt has ballooned to over Rs 1.25 lakh crore. This figure encompasses Rs 27,900 crore from the general provident fund accrued during the last financial year.

Chief Minister Omar Abdullah, doubling as the finance minister, presented these figures in a written response to Assembly member Sajad Gani Lone. The total debt, outlined as of March 31, 2024, includes significant loans like Rs 69,894 crore from the Reserve Bank of India.

As per the Economic Survey Report (ESR) 2024-25, the rising debt represents 52% of Jammu and Kashmir's GSDP of Rs 2,38,677 crore. The internal debt component, a prominent part of public debt, has seen substantial growth over the last decade.

(With inputs from agencies.)