Madhya Pradesh Spends 30% of New Borrowings on Repaying Old Debt

Madhya Pradesh is allocating roughly Rs 30 out of every Rs 100 it borrows to service its existing debt obligations. The state's internal debt has grown dramatically, rising from approximately Rs 83,718 crore in 2015-16 to around Rs 3.33 lakh crore by 2024-25. This sharp increase over less than a decade reflects a significant buildup of financial liabilities for the state. The growing debt repayment burden raises concerns about the state government's fiscal flexibility and its ability to fund development expenditure.