SUSTAINABLE BORROWING

Sustainable borrowing is an important tool for economic growth and poverty eradication. It boosts countries’ capacity for long-term financing to invest in infrastructure, education, employment, and health. However, a rapid rise in debt accumulation and the shifts in debt composition can pose challenges for managing it.

The states were ranked by the sustainable borrowing rates which is difference between the total revenue growth (internally generated revenues and federal allocations) and the total debt growth.