Top 10 State with Largest National Debt | இந்தியாவின் அதிக கடன் சுமை உடைய மாநிலங்கள் | Tamil ழி |

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Top 10 State with Largest National Debt இந்தியாவின் அதிக கடன் சுமை உடைய 10 மாநிலங்கள் | Tamil ழி |


Indian states racked up more debt to fund widening budget deficits after some of them announced waivers for farmers grappling with an agrarian crisis.

The increase in debt levels is in turn boosting redemption pressure on states, which normally issue plain vanilla bonds, according to a Reserve Bank of India report published Monday. It implies borrowings by provinces might soar in the coming years and may lead to crowding out of the private sector in a market already cramped by issuances by the federal government and state-run enterprises.

“Outstanding debt of states have risen over the last five years to 25% of gross domestic product, posing medium term challenges to its sustainability,” the central bank said in the report, Study of State Finances. Their debt profiles are prone to risks, especially if power distribution companies owned by them pile up losses.