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Some states sticking to off-budget loans: Centre
Financial Express Kochi
|July 23, 2025
EVEN THOUGH THE Centre discontinued off-budget borrowings since 2022-23 to bring transparency to budget-making, some state governments aren't following the path.
States raised ₹29,336 crore in FY25 via off-budget means, indicating their continued reliance on off-balance sheet liabilities to fund programmes, minister of state for finance Pankaj Chaudhary told Rajya Sabha on Tuesday.
The minister did not name the states that raised off-budget loans in the last fiscal.
After the Centre's clampdown on states for resorting to fiscal indiscipline from FY22, states' off-budget borrowings fell 47% on-year to ₹35,773 crore in FY23.
The off-budget borrowing declared by the states through their companies, special purpose vehicles (SPVs) and other equivalent instruments, was estimated at ₹67,181 crore in FY22.
Such borrowings further fell 41% on-year to ₹21,251 crore in FY24, before rising again to ₹29,336 crore in FY25, Chaudhary said.
Dit verhaal komt uit de July 23, 2025-editie van Financial Express Kochi.
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