J&K’s liabilities swell to 1.12 lakh crore

Srinagar, Feb 5: Jammu and Kashmir's liabilities swelled to Rs 1.12 lakh crore in 2022-23.

As per the budget, the total liabilities of the J&K government stand at a staggering Rs 1,12,797 crore.

Of this, public debt accounts for Rs 69,617 crore, comprising Rs 68,786 crore of internal liabilities and Rs 831 crore of loans and advances from the Centre. The remaining Rs 43,180 crore are other liabilities such as insurance and pension funds (Rs 1,331 crore), provident funds (Rs 28,275 crore) and other obligations (Rs 13,574 crore).

Compared to this, in 2021-22, the total debt stock of J&K at the end of the financial year stood at Rs 1,01,462 crore.

This included a public debt of Rs 62,395 crore and other liabilities of Rs 39,047 crore.

The ballooning public debt has now touched Rs 69,617 crore from 62,395 from the corresponding year.

From just Rs 29,972 crore in 2010-11, the liabilities have spiralled over 3.5 times in a decade.

The huge debt burden underscores the need to expand revenue sources and promote economic growth.

The debt to GDP ratio is a key indicator of the debt burden on a state or economy.

As per budget estimates, Jammu and Kashmir's debt-to-GDP ratio for 2024-25 stands at 51 percent.