Assam's Rising Debt: Economic Survey Sheds Light

Assam's government borrowings surged by 78% over three years, while GSDP and per capita income growth decelerated. The state's share in national GDP increased, yet revenue receipts and expenditure present fiscal challenges. Tax and non-tax revenue collections saw significant improvements, but salary and pension costs remain high.

According to the Economic Survey report for 2024-25, the Assam government witnessed a substantial increase in annual borrowings, rising by 78% over three years starting from 2019-20. The report, unveiled in the state assembly, outlines a slower growth for both GSDP and per capita income in the current fiscal year.

The borrowing amount escalated from Rs 16,634.53 crore in 2019-20 to Rs 30,510.80 crore in 2022-23. Nominal GSDP is projected to grow by 12.74% in 2024-25, a decline from the previous year's figure of 19%. However, the state's share in India's GDP expanded from 1.65% in 2016-17 to 1.99% by 2024-25.

Revenue dynamics reveal a mixed picture. While state tax collections have improved markedly owing to governmental measures, revenue receipts are predicted to drop by 4.35%. Central fund contributions to revenues are anticipated to rise, and non-tax revenues saw significant increases. Nevertheless, the bulk of revenue expenditure is funneled into employee salaries and pensions.