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India state fiscal health: Punjab has highest interest burden in FY25

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India state fiscal health: Punjab has highest interest burden in FY25

Home / Economy / News / India state fiscal health: Punjab has highest interest burden in FY25

The Business Standard's India State Fiscal Health Tracker is based on the RBI's 2025 Handbook of Statistics on Indian States and compares states and UTs across eight separate fiscal indicators

Interest payments put varying levels of pressure on state revenues in FY25. (File)

Sarjna Rai New Delhi 4 min read Last Updated : Aug 31 2026 | 11:33 AM IST

Odisha had the lowest interest burden among states and Union Territories for which comparable data was available in 2024-25 Budget Estimates (BE), at 2.61 per cent, according to Business Standard's India State Fiscal Health Tracker . It was followed by Arunachal Pradesh at 3.06 per cent, Manipur at 3.97 per cent, Delhi at 4.16 per cent and Mizoram at 4.88 per cent.

At the bottom was Punjab with the highest interest burden, followed by Haryana, Tamil Nadu, Kerala and West Bengal.

The tracker is based on the Reserve Bank of India 's 2025 Handbook of Statistics on Indian States and compares states and UTs across eight separate fiscal indicators.

Interest burden shows how much of a state's revenue is spent on paying interest on its debt.

It matters because money spent on interest cannot be used for other needs, such as public services, infrastructure or development projects.

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A higher interest burden means a larger share of the state's revenue is going towards servicing debt, leaving less room for other spending.


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