New Delhi, Feb. 12 -- India's state-level debt has surged significantly, with some states now facing debt-to-GDP ratios nearing 50%, raising concerns about fiscal sustainability.

A recent study by the National Council of Applied Economic Research (NCAER) highlights the growing divergence between heavily indebted states and those maintaining fiscal discipline, which could impact their ability to fund essential development programs.

These states have seen a sharp rise in their debt burdens due to high revenue expenditures, growing subsidies, and limited revenue generation.

The paper, titled "The State of the States: Federal Finance in India" and authored by NCAER Director General Dr Poonam Gupta and Visiting Distinguished Professor Barry...