In numbers: States owe the Center 3 lakh + crore
From 2014-15 to 2020-21, the Center received a total reimbursement of over Rs 1.45 lakh crore including interest.
The Center has released details of loans extended by the Union government to states since 2014 and the remaining amount is ₹3.02 lakh, with Madhya Pradesh topping the list with ₹30,663 crore as of March 31, 2021.
At the Rajya Sabha, Trinamool Congress (TMC) MPs Abir Ranjan Biswas and Dr. Santanu Sen questioned the Finance Minister on the loans given by the Union Government to the States. The answer was given by Minister of State for Finance Pankaj Chaudhary.
Details of loans per state per year provided to the states by the Union government since 2014 have been shared along with the total repayment per year of principal and interest related to the loans and advances by the states.
However, details of the state’s repayment of principal and interest, and details of outstanding state government debt are not available in the Union government’s financial account, Chaudhary said.
The gross fiscal deficit (GFD) of all states as a percentage of their GDP since fiscal year 2013-2014, by state and by year, was also shared by the minister.
According to information provided by the central government, Madhya Pradesh has an outstanding amount of ₹30,663 crore which is the highest by any state. Tamil Nadu owes the Union government ₹27,505 crore, followed by Karnataka (₹26,731 crore). Rajasthan has outstanding loans of ₹23,537 crore and Andhra Pradesh ₹20,994 crore. Sikkim had the fewest loans of ₹296 crore.
Total outstanding loans against states is ₹3.02 lakh crore as of March 31, 2021.
Details of loans and advances granted by the central government to the states from 2014-15 to 2021-22 were also given. In 2014-15, a loan of ₹11,939 crore was given to states, while in 2015-16 it was ₹12,504 crore.
Since then, every fiscal year, Union government lending to the states has only increased. In 2016-17 it was ₹17,768 crore while in 2017-18 it was ₹17,516 crore. ₹23,828 crore loans were granted in 2018-19, and ₹24,681 crore in 2019-20.
Government borrowings increased fivefold in FY 21.22 from the prior year. In 2020-21 it was ₹1.39 lakh and in 2021-22 it was ₹1.83 lakh.
“The details for fiscal years 2020-21 and 2021-22 include back-to-back loans to states in lieu of a shortfall in GST compensation,” the government said.
In 2021-22, Karnataka was the biggest borrower with loans of ₹20,070 crore. Maharashtra was second with ₹18,419 crore. Gujarat took ₹13,675 crore while Tamil Nadu was fourth with ₹13,305 crore. Punjab was fifth with ₹12,585 crore. Data for 2021-22 is provisional, the government said.
From 2014-15 to 2020-21, the Center received a total refund of over ₹1.45 lakh crore including interest.