Which state of India has the highest debt? RBI report exposed the economy

News India Live, Digital Desk: Debt… This is such a word that on hearing it, whether it is a common man or the government, wrinkles appear on the forehead. We are often worried about our household budget, but have you ever wondered how the budget of the state in which you live is going? Is your state spending more than it earns?

The Reserve Bank of India (RBI) has recently presented some data on the financial condition of the states. These figures are not just numbers, but show the direction in which the future of your state is going. Let us understand the whole story in simple language without any heavy economics.

Who is at the forefront in taking loan?

Often when we talk about ‘poverty’ or ‘backwardness’, the name of UP or Bihar comes to our mind. But in the case of market borrowing, the story is a little different. According to the latest indications from RBI, Tamil Nadu For example, states considered developed are also quite high in the list of borrowing.

In fact, states which spend more on their development schemes (roads, bridges, metro etc.) have to raise loans from the market. In technical language it is called fiscal deficit or ‘Gross Fiscal Deficit’ (GFD). In simple words – money taken to fill the situation of ‘income is one rupee, expenses are one rupee’.

Story of UP: If the dream is big, then the challenges are also big

Talking about Uttar Pradesh, the government there has dreamed of becoming a ‘1 trillion dollar economy’. When the target is so big, then obviously the expenditure on infrastructure will also be huge. UP is definitely taking loan, but economic experts believe that if the loan money is being spent in setting up bridges, expressways and factories, then it is ‘good debt’, because it will increase the income in future. However, figures show that UP is having to work hard to maintain a balance between its expenses and earnings.

What is the condition of Bihar?

The situation in Bihar is a bit delicate. Bihar is a state which depends more on the help and tax share of the central government than on its own resources. Due to lack of industries there, the state’s own earnings are low. In such a situation, if the debt increases, it can be a matter of concern.

Mathematics of rest of the states

States like Maharashtra, West Bengal and Andhra Pradesh are also not untouched by the debt burden. There are many states which are spending a large part of their earnings only in paying the interest on old loans. The example of Punjab is often given, where the debt ratio has reached a very worrying situation.

What difference does it make to the common man?

You might be thinking that if the government takes a loan, what should we do? Makes a difference! When the debt of the state increases, then:

1. Dearness: The government can increase taxes (petrol-diesel, electricity rates) to fill its treasury.
2. Development work stalled: If all the money goes to pay interest, then how will new schools and hospitals be built?
3. Jobs: Due to less investment, new government and private jobs may be cut short.