Assam's outstanding debt has escalated dramatically over the last ten years, increasing by more than 4.5 times to reach ₹1.62 lakh crore by the close of the 2024-25 fiscal year. This significant financial revelation was made by the state government during a recent Assembly session.
Finance Minister Jayanta Malla Baruah provided a written reply to a series of questions posed by Opposition MLAs. He stated that Assam's outstanding debt stood at ₹35,690 crore as of March 31, 2016, prior to the current BJP government assuming power in the state.
Current Debt Figures and Interest Burden
According to the latest information from the Accountant General, the total debt of Assam reached ₹1,61,761 crore by March 31, 2025. Minister Baruah clarified that ₹18,582 crore of these liabilities are interest-free loans with an extended 50-year repayment tenure. Consequently, the state's total loans accruing interest amount to ₹1,43,179 crore.
The state also faced a substantial interest payment burden during the last financial year. Minister Baruah informed the House that Assam paid a total of ₹9,467.75 crore in interest to various lenders throughout 2024-25. These figures underscore the growing financial commitments the state is managing.
Impact on State Finances
The considerable increase in Assam state debt highlights ongoing fiscal challenges and the long-term implications for the state's budget and development initiatives. The government's transparency in presenting these figures to the Assembly allows for public scrutiny and debate on financial management strategies.
As the state navigates its financial landscape, the balance between development expenditure and debt sustainability remains a critical focus for policymakers and citizens alike.