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Business
MP Spends 30% of New Loans on Old Debt
✍️ NDTV
🗓 11 Aug 2026, 08:33 PM
👁 40
Madhya Pradesh is using a significant portion of its new borrowings to pay off old debts. The state is spending Rs 30 out of every Rs 100 borrowed on debt repayment.
The financial situation in Madhya Pradesh has raised concerns as the state is using a substantial amount of its new borrowings to pay off old debts. This trend indicates that the state's financial health is under strain. The debt repayment is a significant burden on the state's finances, limiting its ability to invest in development projects. The state's financial management has come under scrutiny, with many questioning the sustainability of this approach.