JAMMU — Jammu and Kashmir’s total debt in 2024–25 is estimated at Rs 1,37,067 crore about 48 per cent of the Union Territory’s gross state domestic product (GSDP), which has expanded to Rs 2,88,422 crore Chief Minister Omar Abdullah informed the Assembly on Wednesday.
Defending the government’s fiscal management, Abdullah said the rise in GSDP has helped bring down the debt-to-GSDP ratio from 51 per cent in 2023–24 to 48 per cent in the current financial year.
In a written reply to the House, he detailed the debt trend over the past six years, saying liabilities stood at Rs 89,037 crore in 2019–20, accounting for 54 per cent of the GSDP of Rs 1,64,103 crore.
Liabilities rose to Rs 98,244 crore in 2020–21, pushing the ratio to 59 per cent, largely due to economic contraction during the Covid-19 pandemic. In 2021–22, debt increased to Rs 1,06,753 crore, though the ratio declined to 53 per cent as recovery gained momentum.
In 2022–23, liabilities stood at Rs 1,09,825 crore, with the ratio falling further to 48 per cent. In 2023–24, debt rose to Rs 1,25,205 crore and the ratio climbed to 51 per cent, before easing again to 48 per cent in 2024–25.
Abdullah said fiscal sustainability has improved over the years, with economic growth moderating the impact of rising debt.
He added that government borrowings were not being used for unproductive expenditure, with a substantial portion channelled into capital outlay, infrastructure development, power sector reforms and asset creation to strengthen long-term growth.
The chief minister said capital spending during the period consistently supported roads, power infrastructure and health facilities, and asserted that borrowings were kept within limits prescribed under the Fiscal Responsibility and Budget Management framework.
“The concern that rising internal debt has occurred without commensurate creation of productive assets is not borne out by the data,” Abdullah said, adding that the improving debt-to-GSDP ratio and sustained capital investment reflect responsible fiscal management. — (PTI)