Tripura Government’s Mounting Borrowings: Public Debt Rises, Latest CAG Accounts Show Rs 24,685 Crore in Public Debt and Other Liabilities

By Our Correspondent

Agartala, October 21, 2026

Since the BJP-led government assumed office in Tripura in March 2018, the state’s borrowing and debt position has become an important subject for examining public expenditure, infrastructure development and long-term fiscal sustainability.

Official financial records published by the Comptroller and Auditor General of India (CAG) show that Tripura’s outstanding public debt stood at Rs 8,843.62 crore on March 31, 2019. By March 31, 2025, outstanding public debt had increased to Rs 15,724.66 crore. The latest audited accounts also recorded total public debt and other liabilities of Rs 24,684.97 crore at the end of March 2025.

These figures provide a basis for examining the state’s financial position during the period in which the BJP-led government has been in office. However, outstanding debt is not the same as the cumulative amount borrowed since 2018, because the government has also repaid loans during this period.

Key Financial Figures: Tripura’s Debt and Borrowings

The following figures are drawn from CAG accounts and the PRS Legislative Research analysis of the state’s 2026–27 Budget.

Rs 8,843.62 crore: Outstanding public debt on March 31, 2019, according to the CAG’s State Finances Audit Report.

Rs 15,724.66 crore: Outstanding public debt on March 31, 2025, according to the CAG’s audited Finance Accounts.

Rs 24,684.97 crore: Total public debt and other liabilities recorded on March 31, 2025.

Rs 2,328.85 crore: Borrowings recorded in the 2024–25 Finance Accounts.

Rs 7,862 crore: Revised borrowing estimate for 2025–26.

Rs 6,806 crore: Budgeted borrowings for 2026–27.

Rs 1,496 crore: Interest payments budgeted for 2026–27.

Sources: CAG Finance Accounts 2024–25, CAG State Finances Audit Report 2018–19, and PRS Legislative Research’s Tripura Budget Analysis 2026–27.

How Much Has the Debt Increased Since 2019?

A comparison of the audited figures shows that outstanding public debt increased from Rs 8,843.62 crore at the end of March 2019 to Rs 15,724.66 crore at the end of March 2025.

That represents an increase of approximately Rs 6,881 crore, or 77.8 per cent, over the six-year period.

This comparison is based on the reported stock of outstanding public debt, rather than the total value of all loans raised during the period. It does not include a year-by-year calculation of gross borrowing receipts, and it should not be interpreted as the cumulative total of loans taken by the government since March 2018.

The distinction is important because a government may raise new loans, repay existing debt and refinance liabilities during the same period. The outstanding balance reflects the position remaining at a particular date.

Borrowings in Recent Financial Years

The PRS analysis of Tripura’s 2026–27 Budget provides the following figures:

Financial year

Borrowings

2024–25 actual

Rs 2,329 crore

2025–26 revised estimate

Rs 7,862 crore

2026–27 budget estimate

Rs 6,806 crore

The 2025–26 revised estimate is approximately 71 per cent higher than the original budget estimate of Rs 4,594 crore. For 2026–27, the budgeted borrowing figure is around 13 per cent lower than the previous year’s revised estimate.

The figures for 2025–26 and 2026–27 are estimates, not final audited actuals. They must therefore be distinguished from the actual borrowing recorded for 2024–25.

Source: PRS Legislative Research — Tripura Budget Analysis 2026–27.

Where Is the Borrowed Money Being Spent?

The central public-interest question is how the money raised through borrowing has been used and what benefits it has produced.

Government borrowing can finance roads, bridges, public buildings, health facilities, education infrastructure, water supply systems and other development projects. Some loans are specifically provided by the Central Government to support capital expenditure.

According to the 2026–27 Budget analysis, Tripura’s capital outlay is budgeted at Rs 8,394 crore for the current financial year. The revised capital-outlay estimate for 2025–26 was Rs 9,488 crore.

These figures cover capital expenditure from different funding sources and do not mean that the entire amount was financed through borrowing.

To establish precisely how borrowed funds were used, the government’s departmental accounts, project-wise expenditure statements, loan agreements and completion reports would need to be examined.

Important questions include how much was spent on national and state highways, rural roads, hospitals, schools, drinking water projects and urban infrastructure; how many projects have been completed; and whether expenditure has produced the intended public benefits.

CAG Records and Financial Accountability

The CAG’s Finance Accounts provide detailed information about public debt, loans from the Central Government, market borrowings, repayments and other liabilities.

The latest audited accounts also contain observations concerning financial reporting and expenditure management. For 2024–25, the CAG highlighted outstanding utilisation certificates involving Rs 1,378.67 crore across 43 state government departments as of March 31, 2025.

Utilisation certificates are documents used to demonstrate that funds released for specified purposes have been utilised. Outstanding certificates do not automatically establish misappropriation, but they indicate the need for timely documentation and financial oversight.

The CAG also reported that expenditure of Rs 2,792.30 crore had been incorrectly budgeted and booked under the capital section rather than the revenue section during 2024–25, with a further Rs 16.13 crore of revenue-nature expenditure incorrectly incurred from the capital section. These classifications affected the presentation of the state’s expenditure.

Such findings are relevant to any assessment of public finances, but they do not establish that the government’s borrowings have been misused.

Source: CAG Tripura Finance Accounts 2024–25.

Interest Payments and Future Obligations

Borrowing creates future repayment obligations, and interest costs affect the resources available for other public services.

Tripura’s 2026–27 Budget provides Rs 1,496 crore for interest payments. It also provides for Rs 544 crore in debt repayment.

Interest payments are recurring expenditure, while repayment of principal reduces outstanding debt.

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