Parallel Growth: Assam's Income and Debt Both See Significant Increases

Staff Reporter

GUWAHATI: Assam witnessed an almost equal rise in per capita income and per capita debt in the past four years. According to official statistics, while the per capita income rose by 77 per cent since 2021, the per capita debt closely followed it with an increase of 71 per cent during the period. 

The per capita income in Assam was Rs 86,947 in March 2021 and rose to Rs 1,54,222 in March 2025, registering an increase of 77 per cent. Likewise, the per capita debt in Assam in March 2021 was Rs 24,779, which increased to Rs 42,418 in March 2025, registering a 71 per cent increase. The outstanding debt of the state government as of March 2025 was Rs 1.54 lakh crore. The state government borrowed Rs 1.03 lakh crore from the market during the period from March 2017 to March 2025. The government took a Rs 14,321 crore loan from financial institutions and Rs 19,450 crore from state PF during the same period.

In its recent report for 2024-25, the CAG said, “In view of the increasing growth rate of its public debt, the state government may make efforts to augment its revenue and manage its revenue expenditure efficiently so as to avoid pressure on repayment of public debt and interest liabilities on public debt in forthcoming years.”

According to official sources, the debt burden on the government increases because of several factors – the government’s revenue from taxation and other sources determines the need to borrow money. The government borrows money to compensate for revenue shortfalls that create debt responsibilities. Though the state government’s own tax revenue increased in the past four years, the rate of growth could not keep pace with the burden of expenditure.

The government needs funds for its large-scale infrastructure development and social welfare programmes it carries out. The government’s dedication to social welfare programmes through various schemes significantly increases the state’s debt burden. Implementing poverty relief programmes, healthcare programmes, education initiatives, rural development programmes, etc., might force the government to borrow money to meet its financial requirements.

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