Madhya Pradesh Debt Burden Mounts To ₹4.5 Lakh Crore As Loan Repayments Lag Behind Borrowings

Bhopal (Madhya Pradesh): The state government borrows crores of rupees from the market, but it falls behind on payment. As a result, the amount of the loan has increased.

According to the final accounts of 2024-25, the government has borrowed Rs 80,000 crore and paid back only Rs 26,000 crore this year.

So, the government has failed to repay even one-third of the amount. Consequently, the amount of the loan has snowballed. The same situation has arisen in 2025-26.

This year, the government has borrowed more than Rs 1,00,000 crore, but it has so far repaid merely Rs 25,000 crore.

The state has fallen behind on the repayment of as much as the amount of the loan as it has taken this year. So, the loan amount continues to compound.

In the current financial year, the government has made a provision to pay off Rs 34,000 crore. On the other hand, it has made a provision for borrowing over Rs 1,00,000 crore.

The state reels under a loan burden of Rs 4.50 lakh crore, and a chasm has developed between the amount borrowed every year and the sum repaid.

The government, however, claims that it has spent the money on capital expenditure, but the claim has turned out to be hollow.

The state spent Rs 67,000 crore on capital expenditure in 2024-25. But the difference between capital expenditure and loans remains more than Rs 22,000 crore.

The government's capacity to take loans has increased every year, but it has failed to make provisions in the budget for their repayment. Consequently, the government's budget management plans have gone haywire.