OPINION | Beyond The Debt Debate: Reading Assam’s Fiscal Health Ahead Of Budget

Summary

As Assam prepares for its upcoming budget, the state's rising debt has sparked debate about its economic future. However, a closer look at the state's fiscal health reveals that the debt is being used to build physical and economic infrastructure, with the Debt to Gross State Domestic Product ratio remaining below the prescribed ceiling of thirty-two percent. The state's economy has expanded rapidly, with nominal Gross State Domestic Product growing from three point four lakh crore to nearly six point four four lakh crore, indicating a greater capacity to service debt.