1. Assam’s debt increased by over 107% from 2018-19 to 2022-23, per the CAG report.
2. Liabilities growth rate also surged during this period.
3. State’s capital expenditure dropped by over 20% in FY’23 compared to 2021-22.
Guwahati, Aug 31: The Assam government’s outstanding debt surged by over 107% between 2018-19 and 2022-23, with the growth rate of liabilities also rising during this period, according to a Comptroller and Auditor General (CAG) report released on Friday.
The report, presented in the assembly for the 2022-23 fiscal year, highlighted a significant decrease of over 20% in the state government’s capital expenditure in FY’23 compared to 2021-22.
The state’s outstanding debt saw a sharp increase of 107.34%, rising from ₹59,425.61 crore in 2018-19 to ₹1,23,214.80 crore in 2022-23. The growth rate of outstanding liabilities also climbed from 20.60% in 2018-19 to 23.32% in 2022-23.
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The ratio of outstanding liabilities to Gross State Domestic Product (GSDP) rose from 19.21% in 2018-19 to 24.98% in FY’23, driven by increased borrowings from the open market.
Public debt constituted 81.98% of the total borrowings by the end of 2022-23. During the year, it grew by 26.15%, the second-highest rate in the past five years. The average growth rate of public debt at 23.92% also outpaced GSDP growth, which was 11.91% during the same period.
The report warned that this trend could lead to increased pressure on interest payments in the coming years.
Capital expenditure, which is used for the creation of infrastructure such as roads and buildings, decreased by 20.51%, from ₹20,125.83 crore in 2021-22 to ₹15,999.71 crore in 2022-23.
Revenue expenditure in 2022-23 stood at ₹1,01,814.65 crore, making up 84.88% of the total expenditure of ₹1,19,952.20 crore.
The report also pointed out a misclassification of ₹6,668.99 crore, where grants-in-aid given by the state government were incorrectly classified as capital expenditure instead of revenue expenditure, leading to an overstatement of capital expenditure.
The government’s committed expenditure, including salaries, pensions, and interest payments, steadily increased by ₹16,548.72 crore over the five years from 2018-23.
Despite these challenges, the state’s GSDP grew from ₹3.09 lakh crore in 2018-19 to ₹4.93 lakh crore in 2022-23, with a compound annual growth rate of 12.27%.
The state achieved a revenue surplus in only two of the five years between 2018-19 and 2022-23 and managed to keep the fiscal deficit below the target set by the Assam Fiscal Responsibility and Budget Management (AFRBM) Act in two of the five years under review.
