Weak revenue, high capital outlays to keep States' debt at decadal high

The aggregate indebtedness of states, is expected to remain elevated at 30-31 per cent this fiscal, almost similar to 31.5 per cent of last fiscal, Crisil report said

The aggregate indebtedness of states, as measured by debt to gross state domestic product (GSDP), is expected to remain elevated at 30-31 per cent this fiscal, almost similar to 31.5 per cent of last fiscal, Crisil report said on Thursday, November 10.

According to the report, states‘ indebtedness has increased to a decadal high of 34 per cent in the Covid-19 hit fiscal 2020-21 after remaining range-bound between 25 per cent and 30 per cent during fiscals 2016-20 before cooling a bit to 31.5 per cent in fiscal 2022.

The report says that sticky revenue expenditure and the need for