Chennai: The Centre has released a total of Rs 10.36 lakh crore to the states till December. Among the states, Arunachal Pradesh has the highest debt-to-GSDP ratio of 50.4 per cent, while Tamil Nadu tops in total outstanding liabilities.
In FY25 till December, the government has released Rs 10,36,460 crore to the states. Of this, the largest chunk was states’ share of taxes. Tax devolution or distribution of the tax revenue within the divisible pool by the Centre to the states accounted for Rs 9.01 lakh crore. Fund transfers and grants as per the recommendation of the Finance Commission accounted for Rs 71,612 crore. Under the scheme for special assistance to states for Capital Expenditure or Investment, Centre released Rs 63,699 crore between April and December this year, the Finance Ministry informed the Lok Sabha.
In FY24, the total funds released by the Centre was Rs 13.88 lakh crore of which Rs 11.29 lakh crore was the states’ share in the tax revenues. Finance Commission transfers, which includes Revenue Deficit Grants, accounted for Rs 1.49 lakh crore and special assistance to states was Rs 1.09 lakh crore. Finance Commission transfers have been coming down from Rs 2.14 lakh crore in FY22 to Rs 1.74 lakh crore in FY23 and to Rs 1.49 lakh crore in FY24. It is expected to be lesser in FY25.
Meanwhile, the government informed that Arunachal Pradesh has the highest debt to GSDP ratio of 50.4 per cent, followed by Punjab at 47.6 per cent and Nagaland at 44.3 per cent. Odisha has the lowest debt to GSDP ratio of 13.9 per cent, followed by Gujarat with 18.2 per cent and Maharashtra 18.6 per cent.
In terms of total outstanding liabilities, Tamil Nadu topped the list with Rs 8,34,544 crore but had a debt to GSDP ratio of 31 per cent. UP has an outstanding liability of Rs 7,69,245 crore and a debt-GSDP ratio of 28.6 per cent, while Maharashtra’s liabilities are Rs 7,22,887 crore.
