4 states manage to lower debt level in 10 years: Study

Only Gujarat, Odisha, West Bengal, and Maharashtra have reduced their debt-to-GSDP ratios, while Punjab and Tamil Nadu have seen significant increases. Economists propose enhanced fiscal oversight and debt relief for heavily indebted states in exchange for more central oversight. Recommendations include better revenue mobilization, tax base broadening, and capacity-enhancing investments.

​Only Gujarat, Odisha, West Bengal, and Maharashtra have reduced their debt-to-GSDP ratios, while Punjab and Tamil Nadu have seen significant increases. Economists propose enhanced fiscal oversight and debt relief for heavily indebted states in exchange for more central oversight. Recommendations include better revenue mobilization, tax base broadening, and capacity-enhancing investments.