1. Meghalaya ranks 4th nationwide and 3rd in the Northeast for Outstanding Liabilities to GSDP ratio.
2. CAG’s 2023 audit report highlights the state’s rising liabilities and warns of a potential debt trap.
3. The report urges Meghalaya to proactively address mounting debt concerns.
Shillong, Sep 02: Meghalaya holds the fourth highest position nationwide for Outstanding Liabilities to GSDP ratio, and third among Northeastern and Himalayan states.
The Comptroller and Auditor General of India’s (CAG) audit report for the year ending March 31, 2023, highlights the state’s mounting liabilities, urging Meghalaya to take proactive steps to prevent a potential debt trap.
The report details that Meghalaya’s public debt liabilities for 2022-23 reached ₹14,637.12 crore, including ₹11,285.50 crore in market loans, ₹1,349.04 crore in loans from financial institutions, and ₹2,002.58 crore in loans and advances from the Government of India (GOI).
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This represents a 20.31% increase from the previous year, primarily due to a rise in GOI loans (117.40%) and market loans (13.79%).
The CAG report also notes a 20.74% increase in liabilities on the Consolidated Fund of the State from 2021-22, driven by a 13.79% increase in market loans and a 161.90% increase in GOI loans.
Notably, the state did not meet the Meghalaya Fiscal Responsibility and Budget Management (MFRBM) Act, 2006 target of 28% for the Outstanding Liabilities to GSDP ratio during 2018-19 to 2022-23.
