J&K’s Total Debt Crosses ₹1.25 Lakh Crore, Accounts for 52% of GSDP

Srinagar- The Jammu and Kashmir government has revealed that its total outstanding debt stands at ₹1,25,205 crore, including ₹27,900 crore in the General Provident Fund (GPF) for the Union Territory in the last financial year.

In a written reply to Assembly member Sajad Gani Lone, Chief Minister Omar Abdullah, who also holds the finance portfolio, stated that as of March 31, 2024, J&K’s debt comprises ₹69,894 crore in loans from the Reserve Bank of India and state development, ₹27,901 crore in GPF, ₹14,294 crore in reserves, ₹5,758 crore in outstanding national small savings fund, ₹4,032 crore in negotiated loans, ₹2,616 crore in UDAY power loans, and ₹710 crore in Government of India advances.

The total outstanding liability in treasuries as of February 27, 2025, under various account heads, stands at ₹5,429.49 crore.

Debt-to-GSDP Ratio Rises
According to the Economic Survey Report (ESR) 2024-25 tabled in the Assembly on Thursday, J&K’s outstanding debt represents 52% of its Gross State Domestic Product (GSDP) of ₹2,38,677 crore. The public debt of ₹83,010 crore makes up 66% of the total on-budget outstanding debt, including ₹82,300 crore in internal debt and ₹710 crore in advances from the Centre.

Provident fund liabilities constitute 21% of the total debt. The report noted that over the past decade, the proportion of internal debt to total on-budget outstanding debt has increased from 55% to 66%, while the provident fund’s share has dropped from 27% to 21%.

The debt-to-GSDP ratio has also increased from 47% in FY2014 to 51% in FY2024, signaling rising financial commitments for the UT.