Guwahati: The Assam government borrowed ₹24,118 crore during the financial year 2023-24, Finance Minister Ajanta Neog informed the state assembly on Tuesday.
The borrowing, which marks a steady increase in Assam’s financial obligations, was undertaken from multiple sources, including market loans and financial institutions such as NABARD.
Despite the significant debt accumulation, the state has remained committed to repaying its dues. Neog stated that ₹6,924 crore was repaid in 2023-24, continuing a pattern of gradual debt servicing.
Over the years, Assam’s loan repayments have varied, with ₹4,863 crore repaid in 2022-23, ₹5,177 crore in 2021-22, ₹3,570 crore in 2020-21, and ₹4,589 crore in 2019-20, reflecting the government’s focus on maintaining fiscal discipline.
The borrowing trend in Assam has shown a sharp rise in the past decade. In 2016-17, the state had borrowed ₹5,649 crore, which surged to ₹10,476 crore in 2017-18, ₹14,004 crore in 2018-19, ₹16,635 crore in 2019-20, ₹18,807 crore in 2020-21, ₹16,548 crore in 2021-22, and ₹21,602 crore in 2022-23 before touching the latest figure. The increasing debt burden has raised concerns about fiscal sustainability, but Neog assured that the state’s debt-to-GSDP ratio remains within permissible limits.
Neog highlighted that the debt-to-GSDP ratio for 2023-24 stood at 24%, well below the 32% upper threshold set under the Assam Fiscal Responsibility and Budget Management Act. This, she asserted, reflects the government’s prudent approach in handling financial obligations while ensuring continued investments in development projects.
The rising loan figures indicate the government’s increasing reliance on external funding to drive infrastructural and welfare initiatives. However, with a structured repayment strategy and a controlled debt-to-GSDP ratio, Assam aims to balance its fiscal growth while keeping financial risks in check.