J&K debt touched over Rs 1.25 lakh Cr in last fiscal: CM

Jammu, Mar : Chief Minister Omar Abdullah Saturday stated that the overall fiscal liabilities or debt of Jammu and Kashmir touched over Rs 1.25 lakh crore in the last fiscal.

This accounted for 52 percent of J&K’s GSDP of Rs 2,38,677 crore.

The total outstanding liability in treasuries, as of February 27, 2025, under various object head of accounts, was to the tune of Rs 5429.49 crore.

The total debt, however, excludes off-budget borrowing and apportionment of debt between Union Territories of Ladakh and J&K.

The Chief Minister stated this in a reply to the question of Peoples Conference MLA Sajad Lone in the Legislative Assembly.

The total debt portfolio of Rs 1,25,205, as of March 31, 2024, included Rs 69,894 crore State Development Loan (SDL) and Reserve Bank of India loans; Rs 27,901 crore General Provident Fund (GPF) net (21 percent); Rs 4032 crore Negotiated loans and Rs 5758 crore National Small Saving Fund (NSSF), the Chief Minister shared in his written reply.

This debt also included Rs 710 crore Government of India advances; Rs 14,294 crore Reserves and Deposits and Rs 2616 crore UDAY Power Bonds.

Notably, the proportion of internal debt to total on-budget outstanding debt has spiralled from 55 percent to 66 percent while debt as a percentage of GSDP has risen from 47 percent to 51 percent, during the last decade.

The Chief Minister, responding to the specific query about unpaid bills or liabilities of contractors regarding PHE division Handwara, informed the House that the total unpaid works bills of PHE Handwara were Rs 24 lakh as of February 25, 2025.

He asserted that the bills submitted for payment at treasuries were cleared regularly as per the availability of resources.

The Chief Minister, while presenting his maiden budget on Friday, had also underlined that because of historical challenges of high committed expenditures and limited revenue streams, Jammu and Kashmir had been facing consistent fiscal stress.

“Own tax and non-tax revenues cover only 30 percent of revenue receipts and 25 percent of budgetary needs. An unfavourable geographical location and years of unrest have hindered industrialization, straining resources and deepening constraints,” he had pointed out.

This, according to the Chief Minister, was also compounded by the fact that “circumstances did not allow the J&K to fully harness the sectors in which it had the potential.”

“As a result, J&K remains heavily reliant on central grants and often requires ways and means advances and overdrafts to manage liquidity. We are strengthening debt sustainability by keeping all borrowings within approved limits and pursuing fair apportionment of J&K’s erstwhile public debt between the successor UTs. We have also started contributing to RBI’s contingency funds—CSF for debt repayment during stress and GRF for sudden financial obligations,” the Chief Minister had struck an optimistic note.