Assam’s Borrowings Surge by 78% in Three Years: Economic Survey

Quick Summary

• Assam’s annual borrowings increased by nearly 78% from 2019-20 to 2022-23.
• Borrowings rose from Rs 16,634.53 crore in 2019-20 to Rs 30,510.80 crore in 2022-23.
• the state’s GSDP for 2024-25 is projected at Rs 6.43 trillion, marking a growth of 12.74%.
• There is a decrease in the GSDP growth rate compared to the previous year (19% in 2023-24).
• Per capita income is predicted to rise by 10.33% for the fiscal year of 2024–25.
• Revenue receipts are expected to drop by approximately 4.35% in comparison with the previous year.
• The share of central funds is projected to increase from roughly half to over sixty percent of total revenue receipts by 2024–25.

Indian Opinion Analysis

The meaningful rise in Assam’s borrowing over recent years indicates heightened financial demands possibly linked with scaling developmental projects or dealing with existing liabilities. This scenario raises concerns about fiscal sustainability if this trend continues without corresponding increments in revenue streams.

Moreover, while there’s growth both in GDP and per capita income, it’s evident that these rates are slowing compared with last year’s figures—a matter requiring strategic interventions focusing on lasting economic developments and boosting private-sector participation.

Additionally,despite improvements reported in tax collection efficiency and non-tax revenues,a downward trend predicted for overall revenue receipts highlights potential budgetary pressures moving forward.

The growing reliance on central funds may relieve some internal pressure but poses dependency risks; hence striking a balance between self-reliant resource-generation mechanisms and judicious use of external funding becomes crucial moving forward.

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