Chennai: The Center 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 at 50.4 percent, while Tamil Nadu tops the total outstanding liabilities.
Till December in FY25, the government has released Rs 10,36,460 crore to states. The largest share of this was the share of state taxes. Within the tax distribution or divisible pool of tax revenue, the Center has accounted for Rs 9.01 lakh crore to the states. According to the recommendation of the Finance Commission, the fund transfer and subsidy is Rs 71,612 crore. Under the scheme of special assistance to states for capital expenditure or investment, the Center 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 Center was Rs 13.88 lakh crore of which Rs 11.29 lakh crore was the state’s share in tax revenue. Finance Commission transfers, which include revenue deficit grants, were Rs 1.49 lakh crore and special assistance to states was Rs 1.09 lakh crore. Finance Commission transfers fell from Rs 2.14 lakh crore in FY22 to Rs 1.74 lakh crore in FY23 and Rs 1.49 lakh crore in FY24. It is expected to decrease in the financial year 2075.
Meanwhile, the government reported that Arunachal Pradesh has the highest debt to GSDP ratio at 50.4 percent, followed by Punjab at 47.6 percent and Nagaland at 44.3 percent. Odisha has the lowest debt to GSDP ratio at 13.9 percent, followed by Gujarat at 18.2 percent and Maharashtra at 18.6 percent.
In terms of total outstanding liabilities, Tamil Nadu topped the list at Rs 8,34,544 crore but had a debt to GSDP ratio of 31 percent. UP has an outstanding liability of Rs 7,69,245 crore and a debt-GSDP ratio of 28.6 per cent, while Maharashtra has a liability of Rs 7,22,887 crore.