Guwahati: Raising alarm over Assam’s worsening fiscal health, Leader of the Opposition Debabrata Saikia has appealed to the Gauhati High Court to take suo motu cognisance of alleged violations of statutory financial laws by the state government, warning of a deepening debt crisis and systemic fiscal mismanagement.
In a formal letter addressed to Chief Justice Ashutosh Kumar on Tuesday, the Congress legislator urged the court to step in to safeguard the economic stability and constitutional rights of citizens, citing persistent breaches of the Assam Fiscal Responsibility and Budget Management (AFRBM) Act, 2005.
Saikia alleged that the state’s financial records — including its own budget reports — openly admit to repeated violations of AFRBM mandates, including excessive fiscal deficits and failure to maintain a revenue surplus.
According to his letter, Assam’s debt has spiralled to an estimated Rs. 1.84 lakh crore as of July 2025, with a debt-to-GSDP ratio of 25.2%, approaching the AFRBM’s upper ceiling of 28.5%.
“The government’s own reports between 2021-22 and 2024-25 acknowledge deviations from fiscal targets, while findings by oversight bodies such as the Comptroller and Auditor General (CAG), Reserve Bank of India, and PRS India further substantiate fiscal irregularities,” Saikia wrote.
He cited CAG audit reports that flagged misclassified expenditures, understated deficits, underutilisation of funds, and opaque budgeting practices — all contributing to what he described as a pattern of cosmetic accounting and potential financial misconduct.
The opposition leader also warned of unsustainable borrowing, with market loans accounting for over 81% of the state’s debt in 2022–23.
Citing the RBI’s “State Finances” report, Saikia pointed out that interest payments alone consumed Rs. 9,112 crore, or 8% of Assam’s revenue receipts in 2023–24, curtailing essential development spending.
According to PRS India’s 2024–25 budget analysis, Assam’s debt has more than doubled in five years — rising from Rs. 59,425 crore in 2018–19 to Rs. 1.84 lakh crore — while its fiscal deficit breached AFRBM limits every year since 2019.
Saikia also raised constitutional concerns, asserting that the government’s continuous rollout of cash transfer schemes and freebies — often without proper budgetary approval — violates Articles 203 to 205, which govern legislative oversight on state expenditure.
“These schemes, frequently announced after Cabinet meetings, are politically motivated measures to sway voters using public funds. Such decisions, made without vote-on-account or legislative approval, undermine democratic accountability,” he said.
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Highlighting violations of constitutional Articles 14, 19, and 21, Saikia argued that the fiscal mismanagement infringes on citizens’ rights and violates Articles 202, 266, and 293 related to financial propriety.
He urged the court to issue an interim stay on the announcement and implementation of any new welfare or cash transfer schemes that are not part of the approved budget.
The judiciary’s intervention, he said, is critical to uphold constitutional mandates and protect the long-term economic interests of the state and its citizens.
