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It was followed by Chhattisgarh at 5.0 per cent, Bihar at 3.3 per cent, Jharkhand at 1.0 per cent and Tripura at 0.7 per cent. Uttarakhand and Arunachal Pradesh had the lowest ratios, at 0.0 per cent each when rounded to one decimal place.
The figures are based on 2024-25 Budget Estimates (BE) from the Reserve Bank of India’s 2025 Handbook of Statistics on Indian States.
What do outstanding guarantees tell us?
State government guarantees are contingent liabilities. They arise when a state guarantees the borrowing or other obligations of public-sector entities or other eligible bodies.
A guarantee does not usually create an immediate claim on the state budget. However, it can become a fiscal obligation if the entity whose borrowing or obligation has been guaranteed fails to meet its commitments.
The ratio therefore measures outstanding guarantees relative to the size of a state’s economy. The tracker ranks lower values higher on this indicator. It does not produce an overall fiscal-health score, and the guarantees ratio is one of eight separate indicators used to compare states and UTs.
How is the ratio calculated?
The tracker divides outstanding state government guarantees by GSDP at current prices for the same financial year and multiplies the result by 100.
Formula: Outstanding state government guarantees ÷ GSDP at current prices × 100
Using GSDP as the denominator allows states with economies of different sizes to be compared. The tracker uses current-price GSDP because the guarantee figures are nominal rupee amounts. It does not substitute a previous year’s GSDP when the matching denominator is unavailable.
Top 5 states on the metric
| Rank | State/UT | FY25 BE |
| 1 | Arunachal Pradesh | 0.00% |
| 2 | Uttarakhand | 0.00% |
| 3 | Tripura | 0.70% |
| 4 | Jharkhand | 1.00% |
| 5 | Bihar | 3.30% |
Bottom 5 states on the metric
| Rank | State/UT | FY25 BE |
| 7 | Telangana | 13.40% |
| 6 | Chhattisgarh | 5.00% |
| 5 | Bihar | 3.30% |
| 4 | Jharkhand | 1.00% |
| 3 | Tripura | 0.70% |
The gap between the two ends of the ranking was 13.4 percentage points.
How should the ranking be read?
The ranking covers only outstanding state guarantees as a share of GSDP. It is not an overall ranking of state finances. A state can have a lower guarantees ratio but perform differently on other fiscal indicators.
The figures are also 2024-25 Budget Estimates, not the final accounts. Budget Estimates are figures presented in the budget for that financial year and can differ from the eventual outcome.
The tracker does not show the states and UTs where the comparable data required to calculate the ratio was unavailable. Missing observations are not treated as zero.
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