Which Indian state transformed from being the most indebted to the least indebted over two decades?

A)
Odisha
B)
Punjab
C)
Kerala
D)
Tamil Nadu

Correct Answer :   Odisha


* Odisha has demonstrated a remarkable fiscal transformation over the past two decades.

* From having a debt-to-GSDP ratio of 57.3% in 2002-03, the highest among Indian states at the time, it has reduced this ratio to 16.0% in 2023-24, the lowest in the country.

* Key reforms such as the Odisha Fiscal Responsibility and Budget Management Act (OFRBMA), tax system modernization, and revenue generation from mining leases were instrumental in this turnaround.

* Odisha also maintained a revenue surplus even during the COVID-19 pandemic, showcasing effective fiscal management and resilience. This success highlights the state's disciplined approach to economic governance.

Published On : December 26, 2024