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.

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.