Скачать или смотреть 11 Indian States in DEBT TRAP! 35% of Economy Gone? Odisha vs Punjab

India’s “State Nagar” problem is REAL.

In 11 Indian states, debt is more than 35% of their entire economy!

Earn ₹100, owe ₹35+ … sometimes even more. 💸

🧾 WHAT’S HAPPENING?

• Low tax collection → State income is weak

• High spending → salaries, subsidies, schemes keep rising

• Result: Heavy borrowing, rising debt-to-GSDP ratio

#StateDebt #DebtCrisis #IndianEconomy

📍 TOP & BOTTOM STATES

• Highest debt ratios (debt/GSDP):

– Arunachal Pradesh (top of the list)

– Punjab

– Himachal Pradesh

• Lowest debt: Odisha – the surprise “fiscal discipline” champion

#ArunachalPradesh #Punjab #HimachalPradesh #Odisha

🚪 BACKDOOR BORROWING – HIDDEN DEBT

Some states tried a smart jugad:

• Took loans in the name of:

– State PSUs

– Government companies

– SPVs (Special Purpose Vehicles)

• But repayment? Still from the State Budget!

Centre said:

“Boss, this backdoor borrowing is ALSO your debt.”

#BackdoorBorrowing #StateFinances #FRBM

🏛️ WHY THE CENTRE IS WORRIED

• Too much state debt = risk for entire Indian economy

• Every year, Centre fixes a “Borrowing Limit” for each state

• States get share of Central taxes…

BUT no share in cesses and surcharges

#FiscalFederalism #CentreStateRelations #TaxSharing

📚 UPSC / STATE PCS ANGLE

Important for:

• Indian Economy (Public Finance)

• Indian Polity (Centre–State relations)

• FRBM Act – 20% debt ceiling vs actual 35%+

• Concepts: Debt-to-GSDP, revenue deficit, borrowing limits

Core message of India’s fiscal federalism:

“Kamai badhao, kharch control karo, debt ko sambhalo.” ✅

#UPSC #UPSC2025 #StatePCS #CurrentAffairs #IndianPolity #IndianEconomy #FiscalDeficit #DebtToGDP #FRBM #Budget2025 #IAS #IPS #CivilServices #StudyPathshala #EconomyForUPSC