New Delhi, July 28 -- State government debt repayments are set to rise sharply over the next few years, with the redemption profile of state government securities (SGS) remaining highly front-loaded. An estimated Rs 24 trillion is set to mature between FY2028 and FY2032, according to a report by ICRA.

State governments rely heavily on SGS to fund their fiscal deficits, and borrowings are expected to remain high. The total outstanding SGS stock more than doubled to Rs 73 trillion as of March 31, 2026, from Rs 32.7 trillion in March 2020. This amount is nearly 58 per cent of the Centre's outstanding securities, ANI reported.

State-wise Exposure

The repayment burden is concentrated among a few large states, including Tamil Nadu, Maharasht...