The debt stock will be Rs 5,20,717 crore in 2020-21 (BE) against Rs 4,64,020 crore in 2019-20 (RE). According to the Economic Survey, the debt stock of Rs 5,20,717 crore is 19.6% of the Gross State Domestic Product (GSDP), well within the limit (25% of GSDP) as per Fiscal Policy Strategy Statement 2020-21 for the state.
However, experts believe that, if the debt is mobilised to repay loans and clear liabilities instead of asset creation, it is not a good sign.
The state’s debt stock has been rising successively since 2016-17 when it was Rs 3,64,819 crore, which later rose to Rs 4,02,402 crore in 2017-18, Rs 4,07,152 crore in 2018-19, Rs 4,64,020 crore in 2019-20 and Rs 5,20,717 crore in 2020-21.
The interest payment has also surged during the same period. It was Rs 28,532 crore in 2016-17, Rs 33,018 crore in 2017-18, Rs 34,021 crore in 2018-19, Rs 34,173 crore in 2019-20 and Rs 35,531 crore in 2020-21.
The internal debt of the state is expected to reach Rs 4,30,140 crore (82.6% of the debt stock) as per 2020-21 (BE), of which the open market borrowings are expected to be Rs 3,53,005 crore. In 2020-21(BE), the internal debt of Rs 80,609 crore is expected to be raised, of which the expected open market borrowings are Rs 70,000 crore (share of 86.8%).