J&K total debt estimated at Rs 1.37 lakh crore for FY25: CM

Jammu and Kashmir’s total debt for the financial year 2024–25 is estimated at Rs 1,37,067 crore, accounting for 48 per cent of the Union Territory’s gross state domestic product (GSDP), CM Omar Abdullah said on Wednesday.

In a written reply to the Assembly, Abdullah said the expansion of the GSDP to Rs 2,88,422 crore had helped reduce the debt-to-GSDP ratio to 48 per cent from 51 per cent in the previous year.

Detailing trends over the past six years, he said liabilities stood at Rs 89,037 crore in 2019–20, amounting to 54 per cent of the GSDP. Liabilities rose to Rs 98,244 crore in 2020–21, with the ratio increasing to 59 per cent due to economic contraction during the Covid pandemic.

In 2021–22, liabilities increased to Rs 1,06,753 crore, while the ratio declined to 53 per cent as economic recovery gathered pace. In 2022–23, liabilities stood at Rs 1,09,825 crore, with the ratio further declining to 48 per cent. In 2023–24, liabilities rose to Rs 1,25,205 crore, with the ratio at 51 per cent.

“In 2023–24, liabilities increased to Rs 1,25,205 crore, with the ratio at 51 per cent,” Abdullah said.

He added that in the current fiscal year, liabilities are projected at Rs 1,37,067 crore, while the GSDP has expanded significantly, again bringing the debt-to-GSDP ratio down to 48 per cent.

“The concern that rising internal debt has occurred without commensurate creation of productive assets is not established by the data,” Abdullah said, adding, “The improving debt-to-GSDP ratio and sustained capital investment clearly indicate responsible fiscal management.”

He said a substantial portion of borrowings had been directed towards capital expenditure, infrastructure development, power sector reforms and asset creation, strengthening long-term growth potential.

Abdullah also said borrowings were kept within the prescribed limits of the Fiscal Responsibility and Budget Management (FRBM) framework through calibrated market borrowings, improved cash management and prioritisation of development-linked spending.