The Gauhati High Court has agreed to hear a Public Interest Litigation (PIL) that raises concerns over Assam’s rising debt liabilities and the overall fiscal health of the state. The matter came up before the court on Friday, where the bench observed that the issues highlighted in the petition appeared significant enough to warrant judicial examination. The case is expected to bring renewed attention to the financial condition of the state government and its long-term fiscal sustainability.

The petition was argued by Senior Advocate Kamal Nayan Chowdhary, who pointed to Assam’s increasing dependence on borrowings, off-budget financial commitments and pending liabilities. The plea also cited observations made in recent reports of the Comptroller and Auditor General (CAG), which reportedly highlighted concerns related to the state's financial management practices. The petitioner argued that these issues could have broader implications for governance and public expenditure in the state.

During the hearing, the Chief Justice noted the seriousness of the concerns raised and discussed the extent to which courts can scrutinize financial and policy matters involving government administration. After considering the submissions, the court admitted the PIL and sought a detailed response from the Assam government. The bench directed the state authorities to place their reply on record before the next scheduled hearing.

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The High Court has fixed September 16 as the next date of hearing in the matter. Legal observers believe the proceedings could lead to greater public discussion on fiscal accountability, transparency and the management of public finances. The government's response is expected to provide clarity on the issues raised in the petition and explain the measures being taken to address concerns regarding debt and expenditure.

The PIL comes against the backdrop of a recent CAG report on Assam’s finances for the 2024-25 fiscal year. The report raised concerns about the state’s fiscal sustainability, citing an increasing debt burden, high committed expenditure and relatively limited capital investment. It also highlighted delays in the submission of utilisation certificates and pending accounts of departmental undertakings and autonomous bodies, factors that were said to affect the quality of financial reporting.

Despite these concerns, the CAG report noted that Assam’s economy recorded moderate growth during the 2024-25 financial year, with Gross State Domestic Product growing by 13.07 percent compared to the previous fiscal. However, the report stressed the need for stronger revenue generation, improved expenditure management and structural reforms to ensure long-term fiscal stability. As the case proceeds before the Gauhati High Court, it is likely to keep Assam’s fiscal condition under close public and institutional scrutiny.

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