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Congress leader Debabrata Sakia has written to Gauhati high court (HC) chief justice Ashutosh Kumar seeking suo motu cognisance of the Bharatiya Janata Party (BJP)-led government’s alleged violations of the Assam Fiscal Responsibility and Budget Management (AFRBM) Act, which has said has led to an escalating and unsustainable debt crisis.
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He said the violations, admitted in the state’s financial statements, are compounded by systemic irregularities highlighted in Comptroller and Auditor General (CAG) reports, pointing to potential fraud and corruption. Sakia pointed to a debt-to-Gross State Domestic Product (GSDP) ratio of 25.2%.
The AFRBM Act mandates that the fiscal deficit should not exceed 3% of GSDP, with flexibility up to 3.5% for specific reforms, and a revenue surplus.
Saikia wrote that the crisis threatens the economic stability, public welfare, and constitutional rights, necessitating urgent judicial intervention to enforce fiscal discipline and protect public interest. He added that the government’s annual budget reports, CAG and Reserve Bank of India’s findings reveal a pattern of fiscal mismanagement, including understatement of deficits, misclassification of expenditures, under utilisation of funds, and reliance on costly cash transfer schemes.
“Such practices infringe upon fundamental rights under Articles 14, 19, and 21 of the Constitution…and violate constitutional mandates under Articles 202, 266, and 293, [dealing with the financial matters] warranting suo moto cognisance…under Article 226 of the Indian Constitution,” said Sakia in a letter on Tuesday, a copy of which HT has seen. Article 226 relates to the power to issue writs for the enforcement of fundamental rights and legal rights
Saikia said the state has consistently breached limits between 2019-20 and 2024-25. He added that the fiscal deficit reached 6.50% of the GSDP in 2022-23 against a target of 3.5%. “The escalating debt, high committed expenditures, and underutilised funds have reduced fiscal space for essential services, increased borrowing costs, and fuelled inflationary pressures, adversely affecting the right to a dignified life under Article 21,” the letter said.
Saikia cited the CAG’s 2022-23 State Finances Audit Report and said that the outstanding liabilities have surged by 107.34% from ₹59,425.61 crore in 2018-19 to ₹1,23,214.80 crore in 2022-23. By July 2025, the debt is estimated at ₹1,84,463 crore, based on fiscal deficit trends and net borrowings.
The debt-to-GSDP ratio has risen from 19.21% in 2018-19 to 25.2% in 2024-25, approaching the AFRBM Act’s 28.5% ceiling. The annual growth rate of outstanding liabilities (23.32% in 2022-23) significantly outpaces GSDP growth (12.27% annually).
Saikia accused the government of cosmetic accounting practices, such as inflated budget projections and misclassifications, which obscure financial realities and facilitate potential misappropriation. He referred to the non-submission of utilisation certificates for ₹37,991.70 crore in 2022-23.
Saikia blamed cash transfer schemes for exacerbating the crisis. He said the schemes lack transparent cost-benefit analyses, were declared without a vote-on-account, and violate the Constitution. Saikia sought a notice to the state government and direction to the CAG to conduct a time-bound audit within three months on 2024-25 compliance with the AFRBM Act.
Saikia sought an interim stay on the announcement and implementation of new freebie or cash transfer schemes not included in the annual budget, particularly in the lead-up to the 2026 elections, to prevent fiscal strain and electoral misuse.
BJP spokesperson Rupam Goaswami accused the Congress of mudslinging for headlines. “If they had some proof, they should have filed a PIL [public interest litigation] instead of asking the high court to take suo motu cognisance.” Goaswami said the government is transparent and will continue to implement welfare schemes, taking the state’s fiscal health into account.
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