Assam’s outstanding liabilities are projected to touch ₹2,06,608.30 crore by the end of the current financial year, according to a recent report by the RBI. 

• The figures underline rising fiscal pressure on the State at a time when welfare demands and climate vulnerabilities are increasing.

Key Debt Trends

• Assam’s internal debt stands at ₹1,46,758.7 crore, of which nearly ₹1.28 lakh crore comprises State government securities.
• Outstanding liabilities have risen sharply over recent years:
  • March 2024: ₹1,50,901.8 crore
  • March 2025: ₹1,78,058.9 crore
  • March 2026 (projected): ₹2,06,608.30 crore
• As a percentage of Gross State Domestic Product, liabilities increased from 21.2 % in 2020 to 27.9  % in 2026, indicating growing dependence on borrowings.

Borrowing Pattern

• Gross market borrowings rose from ₹17,100 crore (2022–23) to ₹19,000 crore (2024–25).
• In the current financial year alone, borrowings have already crossed ₹9,204 crore.
• About 82.4  % of outstanding State government securities mature within ten years, increasing near-term repayment pressure.

RBI’s Fiscal Concerns

The report cautions that state government finances have deteriorated compared to the previous year. Key risks include:

• Persistently high debt levels and rising contingent liabilities.
• Expanding cash transfer and welfare schemes, which, while socially important, may crowd out spending on infrastructure.
• Geopolitical uncertainty affecting macroeconomic stability.

The RBI recommends fiscal consolidation, better cash management, and impact assessment of welfare schemes to ensure outcomes justify costs.

Climate Risk Dimension

• Assam is among nine Indian states listed as globally most vulnerable to climate change-related damages.
• Damage intensity in Assam is projected to increase significantly between 1990 and 2050.
• The RBI suggests adopting climate budgeting, integrating fiscal planning with climate adaptation and resilience goals.

Exam Hook – 

Consider the following statements:

1. Assam’s outstanding liabilities as a percentage of Gross State Domestic Product have increased since 2020.
2. State government securities form a major component of Assam’s internal debt.
3. The Reserve Bank of India discourages all forms of welfare spending by states.

Which of the statements given above is/are correct?
Answer: 1 and 2 only

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