Editor,
The news “State’s loans amount to 40 percent of GSDP: Cong warns of debt trap” (ST December 2, 2025) not only made interesting reading but is also amusing because it is not factual. According to Policy Research Studies Legislative Research, commonly referred to simply as PRS, an independent, non-partisan research initiative based in New Delhi. PRS provides analysis of legislation and policy to help Members of Parliament (MPs), state legislators, journalists and citizens better understand complex governance and fiscal issues. Besides the Ministry of Finance, Government of India, independent assessment such as those by the International Monetary Fund (IMF) and Ernst and Young (EY) India’s national average debt-to-GDP ratio is currently estimated at around 81% of the Gross Domestic Product (FY 2024-25) and not 28% as stated by the Meghalaya State Congress President Vincent Pala. Both IMF and EY, project India’s general government debt-to-GDP ratio to gradually decline toward 77% by 2030.
These agencies along with the Finance Department, Government of Meghalaya – Annual Financial Statement, NITI Aayog’s Macro and Fiscal Landscape of Meghalaya reports that the State’s debt-to-GSDP (Gross State Domestic Product) ratio is projected at about 33% for FY 2025-26. Key figures from Meghalaya’s Budget 2025-26 indicates a GSDP of Rs 66,645 crore (current prices, FY 2025-26). The outstanding debt revised estimates stand at Rs 21,900 crore FY 2025-26. Hence the debt-to-GSDP ratio works out to 33% (calculated as debt divided by GSDP).
The Fiscal Deficit is targeted at 3% GSDP (Rs 1970 crore) and a Revenue Surplus of 7.6% of GSDP (Rs 5035 crore). The contextual insight is Meghalaya’s debt-to-GSDP ratio (33%) is lower than the national average of 81%, reflecting relatively moderate borrowing compared to overall economic output. The State has maintained its fiscal deficit within the 3% ceiling recommended by the Finance Commission of India, which is considered a healthy benchmark for states. A consistent revenue surplus (above 7% of GSDP) provides fiscal space for capital expenditure and reduces reliance on borrowings. In FY 2025-26, Meghalaya plans to repay Rs 2405 crore of debt, further stabilizing its debt profile.
A comparative note shows that Meghalaya’s debt ratio of 33% is among the lower ranges for Indian states, many of which hover between 30-40%. States with higher infrastructure spending (like Punjab or Kerala) often show debt ratios above 40%. Assam’s ratio estimated for 2025-26 which is below 40% is higher due to infrastructure and social spending commitment, Meghalaya’s ratio estimated for 2025-26 is in the range of 36 and 38% is no doubt a rising debt but still below high-debt states like Punjab, Kerala and Assam, Manipur’s ratio is estimated at 32-34% which is moderate because the state is supported by central transfers. In the case of Tripura, it is in the range of 33-35% which is stable though welfare schemes add pressure.
It is important to take note that the Fiscal Responsibility and Budget Management (FRBM) framework recommends that states keep debt-to-GDP below 40%. Most North Eastern States are within or close to this threshold. States like Punjab (53%), Rajasthan (47%) and West Bengal (45%) are far more indebted than the North Eastern States. What are the drivers of debt? Heavy reliance on central transfers and grants, limited industrial base, so fiscal deficits are covered by borrowing. Infrastructure and welfare spending push debt upwards in Assam and Meghalaya while hydro power revenues help Sikkim maintain stability with a ratio of 31% debt-to-GSDP.
Lastly, Paul Krugman, a Nobel Prize winning liberal economist argues that overall size of national or State debt is less relevant than the Debt-to-GDP ratio. He notes that the debt-to-GDP ratio was high after World War II, similar to current levels (120.73% in the USA). He emphasises that government debt should not be compared to household debt. Unlike individuals, governments do not die and can generate revenue over time. Governments need to service their debts by paying interest and repaying principal when bonds become due. However, they do not necessarily have to pay off the entire debt. He further points out that historically, it is unusual for governments to pay off large debts completely. For example, Great Britain has held onto debt incurred as far back as the Napoleonic wars. He believes that high debt levels can be managed as long as the debt does not rise too much faster than revenue. Krugman’s perspective highlights the importance of managing debt in relation to the economy’s overall size and revenue generating capacities.
Yours etc;
VK Lyngdoh,
Via email
Need for Strict Implementation of Road Safety and Traffic Rules
Editor,
This is in continuation to the letter that appeared in these columns (ST December 2, 2025) regarding the need for implementing road safety measures in our city. I fully agree with the writer that mere installation of signages or making helmets compulsory will not be enough to address the larger issues of road safety and traffic discipline. The reality is that many drivers and bikers in our city take traffic rules far too lightly. It is common to see drivers using mobile phones while driving and moving slowly or erratically without considering those behind them, some are even drunk while driving and others drive speedily. Cars frequently stop or park anywhere and in many localities vehicles are parked even on narrow roads without any regard for the inconvenience caused to others.
Another frequent scenario is the overtaking even during traffic jams, switching lanes causing obstruction to vehicles coming from the opposite direction. Overloaded taxis, inappropriate use of indicators and signals, and general disregard for basic traffic rules have become everyday occurrences. These behaviours not only create avoidable traffic congestion but also significantly increase the risk of accidents.
Unless these issues are addressed with the seriousness they deserve, the city will continue to witness rising accident rates and unnecessary traffic jams. The only solution is strict implementation and enforcement of traffic rules and safety norms. For this to happen effectively, there must be clear accountability and responsibility at all levels—both among road users and the authorities. Through your esteemed newspaper, I wish to appeal to the concerned authorities to take stronger, more stringent and consistent action, and to the public to adopt responsible behaviour on the roads and only then, can our roads be safer for everyone.
Yours etc.,
Shan Lyngdoh
Via email
Declining reading habits
Editor,
Reading habits are declining rapidly, especially among the younger generation. Smartphones and social media have shifted attention away from books, leading to wasted time and weakened focus. Libraries today witness far fewer visitors than before. As a result, people are gradually losing creativity, critical thinking, concentration, and the ability to remain mentally engaged for long periods. On the other hand, constant scrolling on smartphones creates anxiety, stress, and a craving for new stimulation every moment. Parents and teachers must encourage children and students to limit smartphone use as much as possible. Reading habits should be promoted through engaging programs, competitions, and activities that make books appealing. Once individuals experience the joy and depth of reading, they will develop a natural desire to read more on their own.
Yours etc.,
Arshad Alam,
Via email
