Highly Stressed States : RBI Study
As per the Recent RBI study, five states -Bihar, Kerala, Punjab, Rajasthan and West Bengal are highly stressed states.
Status of states Debt:
- Punjab: its debt-GSDP ratio is projected to exceed 45 per cent in 2026-27
- Rajasthan, Kerala and West Bengal: projected to exceed the debt-GSDP ratio of 35 per cent by 2026-27.
- These states will need to undertake significant corrective steps to stabilise their debt levels.
- Ten states accounting for half of the total expenditure in India are Punjab, Rajasthan, Kerala, West Bengal, Bihar, Andhra Pradesh, Jharkhand, Madhya Pradesh, Uttar Pradesh and Haryana.
- Debt/GSDP ratio definition: It is a metric that shows what a state owes with what it produces.
- It indicates that particular state’s ability to pay back its debts.
