On September 21, the rising debt burden of Indian states has become a growing concern. Over the past decade, the total debt of states has tripled. In 2022-23, the combined debt of 28 states reached ₹59.60 lakh crore, compared to ₹17.57 lakh crore in 2013-14, marking a 3.3-fold increase. This data, reported by The Indian Express, is based on an analysis by the Comptroller and Auditor General (CAG). The states’ debt accounts for 22.17% of India’s GDP. JYESHTA Women's American Crepe Wrao Floral Printed Skirt with Ruffle Hem and Elastic Waistband Closure | Skirts for Woman

The debt-to-GSDP (Gross State Domestic Product) ratio, a key indicator of fiscal health, has risen significantly. In 2013-14, the average debt-to-GSDP ratio across states was 16.66%, which increased to 23% by 2022-23. Punjab leads with the highest debt-to-GSDP ratio at 40.35%, followed by Nagaland and West Bengal. Eight states have a debt-to-GSDP ratio exceeding 30%. Odisha, with a ratio of 8.45%, demonstrates fiscal discipline, while states like Maharashtra and Gujarat maintain ratios below 20%, with six states at this level.

Karnataka’s Debt Status
While the CAG report does not specifically mention Karnataka’s debt-to-GSDP ratio, estimates from the NITI Aayog suggest it was 23.9% in 2022-23. This was a slight improvement from 25.68% in 2021, indicating efforts to reduce debt. However, Karnataka’s debt is projected to rise significantly. According to the Karnataka Economic Survey 2024-25, the state’s total debt stood at ₹6.85 lakh crore, expected to increase to ₹7.64 lakh crore by 2025-26.