State finances under strain: Deficit rises, debt stays high - The HinduBusinessLineSENSEX 80,238.85 -1,048.34NIFTY 24,865.70 -312.95CRUDEOIL 7,116.00+ 619.00GOLD 161,882.00 -4,192.00SILVER 259,500.00 -10,625.00SENSEX 80,238.85 -1,048.34NIFTY 24,865.70 -312.95NIFTY 24,865.70 -312.95CRUDEOIL 7,116.00+ 619.00CRUDEOIL 7,116.00+ 619.00GOLD 161,882.00 -4,192.00'; } document.getElementById("lgdv").innerHTML = htmlElements; } function numberformat(i) { return Number(parseFloat(i).toFixed(2)).toLocaleString('en', { minimumFractionDigits: 2 }) } async function gatherResponse(response) { const { headers } = response; const contentType = headers.get('content-type') || ''; if (contentType.includes('application/json')) { return await response.json() } return response.text(); } function getWidth() { if (Math.max(document.body.scrollWidth,document.documentElement.scrollWidth,document.body.offsetWidth,document.documentElement.offsetWidth,document.documentElement.clientWidth) > 991) { document.getElementById("mob").style.display = "none"; document.getElementById("lgdv").style.display = "block"; } else { document.getElementById("mob").style.display = "block"; document.getElementById("lgdv").style.display = "none"; } } getWidth();]]>India’s State finances are showing signs of renewed pressure, CareEdge report on Analysis of State Finances shows. After staying below 3% for three years, fiscal deficit has risen to 3.3% of GSDP in FY25. Debt levels remain high at around 28%, well above the recommended 20% limit. Several large States such as Punjab, Bihar, Rajasthan and Kerala face both high debt and high deficits. Despite high debt, aggregate interest payments have moderated to around 12% of revenue receipts, partly supported by the Centre’s interest-free loans that reduced repayment pressure. Key facts: Published on March 3, 2026Sign into Unlock benefits!Access 10 free stories per monthAccess to comment on every storySign up/Manage to our newslettersGet notified by email for early preview to new features, discounts & offers${ ind + 1 } ${ device }Last active - ${ la }