Morung Express News
Dimapur | December 17
Nagaland is the third most indebted States in India, as per data provided in the Lok Sabha on December 16 citing Reserve Bank of India (RBI).
A written reply from the Union Ministry of Finance, Department of Expenditure indicated that the total outstanding liabilities of Nagaland were Rs 18,166 at end March- 2024, based on Budget Estimates (BE).
Accordingly, the Debt to Gross State Domestic Product (GSDP) ratio of Nagaland stood at 44.3%.
Meanwhile, the state of Arunachal Pradesh had the highest Debt to Gross State Domestic Product ration at 50.4% with the total outstanding liabilities of Rs 21,654 crore.
Punjab had second highest Debt to GSDP ratio at 47.6% with total the total outstanding liabilities of Rs 3, 51,130 crore.
The reply from the Union Minister of State in the Ministry of Finance Pankaj Chaudhary further noted that based on the RBI’s “State Finances: A Study of Budgets of 2023-24,” the ratio of interest payment to total outstanding liabilities of State Governments for the year 2023-24 (BE) ranges from 4.21 percent to 7.01 percent.
He further said that the Union Government provides funds to States under the heads viz. Tax Devolution, Finance Commission Transfers including Revenue Deficit Grants, Scheme for Special Assistance to States for Capital Expenditure/Investment.
