Business Standard

Statsguru: Six charts explain state of stressed finances in India

The RBI study turned the spotlight on 10 states that were reeling from financial stress and on their growing inability to service their debt

Mumbai: A security personal outside Reserve Bank of India (RBI) headquarters, in Mumbai, Wednesday, June 8, 2022. (PTI Photo
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Mumbai: A security personal outside Reserve Bank of India (RBI) headquarters, in Mumbai (PTI Photo

Ishaan Gera
Last week, a Reserve Bank of India (RBI) study highlighted the rising debt burden of some states. In light of a few of India’s neighbours staring at a debt trap, the central bank drew attention to the reality of some Indian states, too, which are facing severe fiscal stress.

The state finances report, which was released last year, showed that the states’ own revenues had barely increased between 2015-16 and 2020-21. In fact, as a proportion of their gross state domestic product (GSDP), Indian states’ own revenues had declined from 7.7 per cent in 2017-18 to 7.4 per cent in

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