Nestled in the northern reaches of India, the Union Territory of Jammu and Kashmir (J&K) has long been a region of scenic beauty and strategic significance. However, behind its picturesque landscapes lies a fiscal narrative marked by escalating debt and burgeoning liabilities. Over the past decade, the economic landscape of J&K has transformed dramatically, with its debt burden swelling to unprecedented levels, posing significant challenges to its financial stability and governance.
In 2019, the abrogation of Article 370 and the subsequent reorganisation of the state into a Union Territory were pivotal events, promising economic rejuvenation and increased investment. However, the fiscal reality has been starkly different. According to the Comptroller and Auditor General ( CAG ), Jammu and Kashmir’s debt has surged to Rs 83,536 crore as of the last fiscal year, reflecting an alarming trend of fiscal imprudence and structural economic weaknesses.
This exponential growth in debt highlights the chronic fiscal challenges faced by the region. The financial year 2022-23 alone saw J&K's total liabilities skyrocket to Rs 1.12 lakh crore.
This includes Rs 69,617 crore in public debt and Rs 43,180 crore in other liabilities such as insurance, pension, and provident funds. These figures not only underscore immediate fiscal challenges but also highlight the long-term financial commitments that the region must manage. Adding to the complexity, the debt-to-GDP ratio of J&K is projected to.