Archive · 6 Oct 2026
Madhya Pradesh Debt Reaches ₹4.5 Lakh Crore as Repayments Lag
Madhya Pradesh borrows money and also has to pay back loans.
In 2024–25, it borrowed ₹80,000 crore but repaid ₹26,000 crore.
In 2025–26, it had borrowed more than ₹1 lakh crore and repaid ₹25,000 crore so far.
The article says the state’s total debt has reached ₹4.5 lakh crore.
The government has set aside ₹34,000 crore for repayments in the current financial year, while planning to borrow more than ₹1 lakh crore.
The government says it used borrowed money for building and other capital spending.
The article says capital expenditure was ₹67,000 crore in 2024–25, but argues that borrowing still exceeded that spending by more than ₹22,000 crore.
It says the growing difference between borrowing and repayment is putting pressure on budget management.
Madhya Pradesh borrowed ₹80,000 crore and repaid ₹26,000 crore in 2024–25, according to the final accounts.
In 2025–26, the state had borrowed more than ₹1 lakh crore and repaid ₹25,000 crore so far, the report says.
The report puts the state’s total loan burden at ₹4.5 lakh crore.
For the current financial year, the government provided for ₹34,000 crore in repayments and more than ₹1 lakh crore in borrowing.
Capital expenditure was ₹67,000 crore in 2024–25; the article says the gap between that spending and loans was more than ₹22,000 crore.
- Who
- The Madhya Pradesh state government.
- What
- The government’s debt burden is reported at ₹4.5 lakh crore, with borrowing exceeding repayments.
- When
- Figures cover 2024–25 and 2025–26; the article does not specify the date for the 2025–26 figures.
- Where
- Madhya Pradesh, India.
- Why
- The article attributes the rising debt to borrowing substantially more than the government repays.
Government’s justification
Article’s criticism
Use of borrowed funds
Government’s justification
The government claims it spent the borrowed money on capital expenditure.
Article’s criticism
The article says the claim is hollow, citing a gap of more than ₹22,000 crore between capital expenditure and loans in 2024–25.
Debt management
Government’s justification
The government has made a provision to repay ₹34,000 crore in the current financial year.
Article’s criticism
The article argues that repayments lag far behind borrowing and that budget provisions have not kept pace with loans.
- Reported total debt
- ₹4.5 lakh crore
- Borrowed in 2024–25
- ₹80,000 crore
- Repaid in 2024–25
- ₹26,000 crore
- Borrowed in 2025–26 so far
- More than ₹1,00,000 crore
- Repaid in 2025–26 so far
- ₹25,000 crore
- Current-year repayment provision
- ₹34,000 crore
- Capital expenditure in 2024–25
- ₹67,000 crore