Central and state debts have tripled in ten years

The total debt of the central government in 2015-16 was only about ₹70 lakh crore. But the Modi government has taken on a huge amount of debt in ten years. By the end of the financial year 2024-25, the debt has reached ₹185 lakh crore. The Union Finance Ministry has estimated that it will cross ₹200 lakh crore by March 31, 2026. That is, it is clear that the debt has almost tripled in just ten years, Union Finance Minister Nirmala Sitharaman said in the Lok Sabha on Monday.

The debt of the central as well as state governments is also increasing rapidly. By March 2025, the total debt of the states is estimated to be about ₹94 lakh crore. That is, if we look at the country as a whole, the combined debt of the central + states is likely to reach ₹290 lakh crore.

If we look at the state-wise, Tamil Nadu is leading with the highest debt. The state has a debt of ₹8.34 lakh crore. Uttar Pradesh is in second place, with a debt of ₹7.69 lakh crore. Next are Maharashtra (₹7.22 lakh crore) and Karnataka (₹5.98 lakh crore). These are the four states leading the country in terms of debt.

In 2015, the total debt of the states was only ₹27 lakh crore. But by 2025, it had become ₹94 lakh crore. That is, the debt of the states has almost tripled during this period. This shows how tough the financial situation of the states has become.

The total debt of the country — the Centre + the states combined — is now creating new records. On the one hand, while development expenditure is increasing, on the other hand, due to insufficient tax revenue, the government is relying heavily on loans. In the long run, these huge debts are likely to become a burden on the country's economy.