High indebted Punjab, Himachal may breach BE of fiscal deficit in FY24

Punjab had over 40% debt as a proportion of GSDP in 2019-20 too, while Himachal Pradesh had 39.1%

Two states -- Punjab and Himachal Pradesh -- which went to Assembly polls last year figured in the list of those which projected their debt to cross 40 per cent of their respective gross state domestic product (GSDP) at the end of 2022-23 (revised estimates) and 2023-24 (budget estimates). 

The two states saw a change in guard, with the Aam Aadmi Party (AAP) replacing the Congress in Punjab, and Congress ousting the Bharatiya Janata Party (BJP) in Himachal Pradesh, backed by their electoral promises.

The states have been facing high debt of over 40 per cent since the Covid-hit year