15 July 2026

Kerala debt crisis debate

The topic addresses critical issues of fiscal federalism, state debt sustainability, and public finance management, which are core components of the GS3 and GS2 syllabus.

Questions

1. Discuss the challenges associated with assessing the fiscal health of state governments in India. How do competing narratives regarding public debt impact the discourse on state-level financial management? 150 words
   Attempt this — 150 words in 8 min

   0 / 150 words 8:00 Reset
2. Analyze the structural causes of rising public debt in Indian states. To what extent does the lack of consensus on fiscal data reporting hinder effective policy formulation and public accountability? 250 words
   Attempt this — 250 words in 11 min

   0 / 250 words 11:00 Reset

Prelims

1. Which of the following best describes the primary responsibility of state governments regarding public debt under the Indian Constitution?

   1. A States can borrow from international markets without any central oversight.
   2. B The Union Government has absolute authority to reject any state borrowing request.
   3. C Public debt management is exclusively a subject under the Union List.
   4. D States can borrow within the territory of India upon the security of the Consolidated Fund of the State, subject to limits set by the State Legislature.