18 June,2026 03:26 PM IST | Mumbai | mid-day online correspondent
Uddhav Thackeray. File Pic
Shiv Sena (UBT) on Thursday expressed concern over the growing debt burden of states across India, citing findings highlighted in a recent report of the Comptroller and Auditor General (CAG), and warned that mounting liabilities could affect long-term economic growth and development.
In an editorial published in its mouthpiece Saamana, the Uddhav Thackeray-led party said the financial position of several states, including Maharashtra, has come under pressure due to rising debt levels, increasing expenditure and fiscal deficits.
The editorial referred to data from the CAG's Finance 2024-25 report and argued that governments at both the Centre and state levels need to exercise greater fiscal discipline.
According to the editorial, the combined debt of Indian states has increased substantially over the past decade.
It noted that total state debt has risen from about Rs 31 lakh crore to nearly Rs 90 lakh crore during the period and claimed that many governments are increasingly relying on borrowings to meet expenditure commitments.
The editorial also pointed to the Centre's debt burden and argued that concerns over fiscal sustainability are not limited to state governments alone.
It questioned the long-term implications of rising debt and increasing interest obligations on public finances and economic growth.
The Sena (UBT) editorial argued that fiscal indiscipline and excessive expenditure have contributed significantly to the growing debt burden.
"While the CAG may have hesitated to state it directly, the bitter truth remains: fiscal indiscipline and the tendency to squander state treasuries on populist schemes to win elections have pushed state governments deeper into a debt trap day by day," the editorial said.
The party contended that growing expenditure commitments, including welfare and subsidy programmes, have increased pressure on state finances.
According to the editorial, governments are increasingly compelled to borrow funds to meet obligations and service existing debt.
Referring to figures cited in the report, the editorial stated that several states are facing significant revenue deficits.
It claimed that 15 states, including Maharashtra, Karnataka, Bihar, Assam, Haryana, Himachal Pradesh, Telangana and Chhattisgarh, have reported a combined revenue deficit of Rs 3.46 lakh crore.
The editorial argued that a combination of declining revenue growth, rising expenditure and increasing debt-servicing costs has weakened the financial position of many states.
It further stated that fresh borrowings are often being used to repay interest liabilities, creating additional fiscal pressure.
The Shiv Sena (UBT) maintained that rising debt obligations are limiting the ability of states to invest in infrastructure and development projects.
According to the editorial, a growing share of public resources is being used to meet debt repayments and interest commitments, leaving fewer funds available for development expenditure.
"The hard-earned money collected from taxpayers is going to be spent entirely on servicing interest; what is the future of our nation? Where exactly is this growing mountain of debt leading the Indian economy?" the editorial asked.
The party argued that the sharp increase in debt and interest payments has placed considerable strain on state finances.
The editorial commended the CAG for presenting what it described as a realistic assessment of the financial condition of states.
"At a time when no Central institution seems to be functioning completely autonomously, the CAG must be thanked for presenting a report that unmasks the true financial status of the nation's states," the editorial said.
The party maintained that the report has drawn attention to issues that require broader public and policy discussion.
Concluding the editorial, the Sena (UBT) expressed concern about the direction of the economy and called for greater fiscal prudence to ensure that debt levels remain sustainable.
"The trajectory of the national economy remains deeply worrisome," the editorial noted.
The comments come amid continuing political debate over government spending, fiscal management and the balance between welfare measures and long-term financial sustainability.
(With inputs from IANS)
