Relative to their GDP, states' liabilities moderating after pandemic

Finance Minister Nirmala Sitharaman this week gave Parliament data on state debts, marking an increase in the absolute value of outstanding liabilities of states.
 
Tamil Nadu has the highest outstanding liabilities, of Rs 7.5 trillion in 2022-23. Uttar Pradesh had the second largest, of Rs 7.1 trillion. Maharashtra (Rs 6.8 trillion), West Bengal (Rs 6.1 trillion) and Rajasthan (Rs 5.4 trillion) are other large borrowers.
 
While many states have seen an increase in absolute debt numbers, their liabilities are moderating relative to the size of their economies.
 
State liabilities were the equivalent of 31.08 per cent of