Assam’s liabilities likely to touch Rs 2.06 lakh cr: RBI

Guwahati, Jan 29: Assam’s outstanding liabilities at the end of this financial year is projected at Rs 2,06,608.30 crore, according to an RBI report.

Internal debt stands at a whopping Rs 1,46,758.7 crore, of which Rs 1.28 lakh crore are State government securities.

The State’s outstanding liabilities at the end of March, 2024 was Rs 1,50,901.8 crore, which rose to Rs 1,78,058.9 crore the following year. As percentage of GSDP, the liabilities increased from 21.2 per cent in 2020 to 27.9 per cent in 2026.

The State’s gross market borrowings rose from Rs 17,100 crore in 2022-23 to Rs 18,500 crore in 2023-24 to Rs 19,000 crore in 2024-25. In this financial year, borrowings has crossed Rs 9,204 crore.

At end-March 2025, 82.4 per cent of outstanding State government securities had a maturity of less than 10 years.

Without naming any state, the report said that the state government finances have somewhat deteriorated compared to last year. Geo-political uncertainty, persistently high debt levels, growing contingent liabilities from guarantees and cash transfer schemes pose risks to state finances at the current juncture.

“Several states have introduced measures in their 2025-26 budgets, leading to farm loan waivers, free electricity for agriculture and households, subsidised transport, allowances for unemployed youth, and direct cash transfers to women. While social welfare programmes are essential in a country where economic disparities remain stark, these welfare expenditures run the risk of crowding out critical investments in physical and social infrastructure. Thus, it is important to carry out impact assessment to evaluate the effectiveness of welfare schemes in achieving the intended outcomes,” the report stated, suggesting that fiscally profligate states may review their market borrowings through fiscal consolidation, exploring alternative financing options and better cash management practices.

The net market borrowing of states/UTs increased by 5.0 per cent to Rs 7.53 lakh crore in 2024-25 from Rs 7.17 lakh crore in 2023-24.

Pointing out that nine Indian states - Bihar, Assam, Uttar Pradesh, Rajasthan, Maharashtra, Tamil Nadu, Punjab, Gujarat, and Kerala - rank among the top 50 regions that are globally most vulnerable to climate change related damages, the report stated that states like Assam, Bihar and Kerala are projected to experience the greatest escalation in damage from 1990 to 2050.

“In view of this, the states should prioritise adoption of climate budgeting to align fiscal planning with climate action. With coherent policies and strategic investments, Indian states can significantly advance their climate resilience goals, contributing positively toward achieving national and global climate commitments,” it added.