Current Affairs - Economy - Discussion

The CAG report highlights the alarming increase in public debt among Indian states over the past decade. While several states have seen a significant rise in their debt-to-GSDP ratio, Punjab emerged with the highest figure at 40.35%. This indicates that Punjab’s debt burden, in proportion to its economic output, is more severe than other states. Nagaland followed with 37.15%, and West Bengal with 33.70%. Such high ratios raise concerns about fiscal sustainability, state finances, and the ability of governments to manage long-term liabilities while still investing in growth and development.