According to an RBI report, the combined debt-to-GDP ratio of states is expected to be at 31% by the end of March 2022, which is worryingly higher than the target of 20% to be achieved by 2022-23.
Given the pandemic-induced slowdown, in its projections, the 15th Finance Commission expects the debt-GDP ratio to peak at 33.3% in 2022-23 (given the high deficit in 2020-21, 2021-22 and 2022-23). Will happen. ), and thereafter to gradually reach 32.5% by 2025-26, said the RBI in its ‘State Finances: A Study of the Budget for 2021-22’.
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