Plea In Gauhati High Court Raises Concerns Over Assam's Growing Debt

The Gauhati High Court on Friday agreed to hear a Public Interest Litigation (PIL) raising concerns over Assam's growing debt liabilities and overall fiscal health.

The petition, argued by Senior Advocate Kamal Nayan Chowdhary, highlighted issues related to the state's increasing dependence on borrowings, off-budget financial commitments and pending liabilities. The plea also referred to observations made in recent reports of the Comptroller and Auditor General (CAG), which reportedly flagged concerns regarding the state's financial management.

During the proceedings, the Chief Justice observed that the issues raised in the petition appeared to be serious and warranted examination. While deliberating on the extent of judicial scrutiny in financial matters, the Court admitted the PIL and sought a detailed response from the Assam government.

The bench has directed the state authorities to submit their reply before the next hearing, which has been fixed for September 16.

The case is expected to bring greater focus on Assam's fiscal condition, with further clarity likely to emerge once the government's response is placed before the Court and subsequent hearings take place.

The Comptroller and Auditor General (CAG) last month raised concern over the fiscal sustainability of the Assam government in its report for the 2024-25 fiscal, pointing at the increasing debt load, high committed expenditure and limited capital investment in the state.

In the report on state finances for 2024-25 tabled in the Assembly, the CAG also said that the delay in submission of utilisation certificates, pending accounts of departmental undertakings and autonomous bodies, is affecting financial reporting.

It said the state's economy showed moderate growth during the 2024-25 fiscal year, with Gross State Domestic Product registering a growth of 13.07 per cent as against the 2023-24 financial year.

The increasing debt load, high committed expenditure and limited capital investment raise concerns about fiscal sustainability, the report said, stressing revenue augmentation, better expenditure control and structural reforms to ensure long-term fiscal health.