The Assam government has taken out huge loans to fund various welfare schemes, free bie schemes, and other development projects. This has raised concerns among citizens about the state’s debt burden and its ability to repay these loans.
As of March 2023, the state’s total debt stood at ₹1.25 lakh crore. This is equivalent to 32% of the state’s Gross State Domestic Product (GSDP). The government has been borrowing heavily to fund its welfare schemes, which have been expanded in recent years.
The state’s debt burden is expected to continue to rise in the coming years. This is because the government has committed to spending more on welfare schemes and other development projects. The state’s ability to repay these loans will depend on its ability to generate enough revenue.
The rising debt burden is a major concern for citizens. They are worried that the government will not be able to repay these loans and that this will lead to higher taxes and other financial hardships.
The government has defended its borrowings, saying that they are necessary to fund the state’s development. The government has also said that it is committed to repaying these loans and that it has a plan to do so.
However, the government’s plan to repay these loans is not clear. The government has not said how it will generate enough revenue to repay these loans.
The rising debt burden is a major concern for the state of Assam. It is a matter of concern for the general citizens of the state as well. The government needs to come up with a clear plan to repay these loans and to ensure that the state’s finances are sustainable in the long run.
Critical News Report on Loan to Gross State Domestic Product Ratio
The loan to Gross State Domestic Product (GSDP) ratio is a measure of a state’s debt burden. It is calculated by dividing the state’s total debt by its GSDP.
The Assam government’s loan to GSDP ratio is 32%. This is higher than the national average of 26%. The high debt burden is a major concern for the state.
There are a number of reasons why the Assam government’s debt burden is so high. One reason is the state’s high spending on welfare schemes. The state has expanded its welfare schemes in recent years, which has led to an increase in spending.
Another reason for the high debt burden is the state’s poor revenue collection. The state’s revenue collection has not been able to keep pace with its spending. This has led to the state having to borrow more money to fund its activities.
The high debt burden is a major concern for the state. It is a burden that will have to be repaid by future generations. The state needs to take steps to reduce its debt burden and to ensure that its finances are sustainable in the long run.
The Assam government needs to take action to reduce its debt burden. The high debt burden is a major threat to the state’s financial stability.
