Srinagar: The Jammu and Kashmir government on Saturday revealed that the Union Territory’s total debt has surpassed ₹1.25 lakh crore, accounting for 52% of its Gross State Domestic Product (GSDP) as per the latest Economic Survey Report (ESR) 2024-25.
In a written reply to Assembly member Sajad Gani Lone, Chief Minister Omar Abdullah, who also holds the Finance portfolio, disclosed that as of March 31, 2024, J&K’s total outstanding liability stood at ₹1,25,205 crore.
Breakdown of J&K’s Debt
- ₹69,894 crore – Loans from the Reserve Bank of India and State Development funds
- ₹27,901 crore – General Provident Fund (GPF)
- ₹14,294 crore – Reserves
- ₹5,758 crore – National Small Savings Fund (NSSF)
- ₹4,032 crore – Negotiated Loans
- ₹2,616 crore – UDAY Power Loans
- ₹710 crore – Advances from the Government of India
Additionally, the outstanding liability in treasuries under various account heads stood at ₹5,429.49 crore as of February 27, 2025.
Rising Debt Burden
The public debt of ₹83,010 crore comprises 66% of the total on-budget outstanding debt in FY 2024, with ₹82,300 crore being internal debt. Over the past decade, the share of internal debt in total outstanding liabilities has increased from 55% to 66%, while the share of provident fund liabilities has dropped from 27% to 21%.
Moreover, the debt-to-GSDP ratio has increased from 47% in FY2014 to 51% in FY2024, highlighting the growing financial burden on the UT’s economy.
