Indian States Accumulating Debt; Fiscal Stability Concerns

Imagine each state is like a family, and they sometimes borrow money.

Many Indian states are borrowing more and more.

Some states, like Punjab and Rajasthan, have borrowed a lot compared to the size of their economy.

They also have a hard time paying it back.

Some states in the mountains also have high debt compared to their economic size.

Experts say it's important what the states spend the borrowed money on; building new things is good.

Spending on things that don't make more money isn't good, and it can create more debt.

Some states manage their money better than others.