Dispur Channels Majority of Borrowings Into Asset Creation; Capital Expenditure Hits Rs 26,409 Crore

Staff Reporter

GUWAHATI: Spending a portion of the loan amount that the state government has been taking from various sources on capital expenditure is indicative of the fact that Dispur is laying stress on asset creation. 

According to information given by the Finance Department in the Assembly, the total loan amount of the state government up to March 31, 2025, was Rs 1.61 lakh crore, including Rs 18,582 crore in 50-year interest-free term loans, which the government will have to repay within 50 years. 

The state government takes loans from the market, financial institutions, the Central Small Savings Fund, state PF and central loans.

The government spent Rs 1.52 lakh crore of the loan amount as capital expenditure from 2016-17 to 2024-25. The capital expenditure in 2016-17 was only Rs 6,000 crore, which increased to Rs 26,409 crore in 2024-25. The government is borrowing and also regularly repaying the interest and principal on the loans. From 2016-17 to 2024-25, the government repaid an interest amount of around Rs 51,000 crore and approximately Rs 46,000 crore in principal.

As of now, the government is taking loans as per the guidelines of the Reserve Bank of India. The government has primarily utilised the loan amount to develop infrastructure, including roads, bridges, hospitals, medical colleges, and schools.

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