Guwahati: The Leader of the Opposition in the Assam Legislative Assembly, Debabrata Saikia, has formally appealed to the Chief Justice of the Gauhati High Court to take suo motu cognizance of what he calls persistent and systemic violations of the Assam Fiscal Responsibility and Budget Management (AFRBM) Act, 2005, by the state government.
In a detailed letter submitted on Tuesday, Saikia urged judicial intervention under Article 226 of the Constitution, citing constitutional violations and an escalating debt crisis that threatens public welfare and economic stability.
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Saikia claims the state’s outstanding liabilities have reached Rs 1,84,463 crore as of July 2025, with the debt-to-GSDP ratio now standing at 25.2%. This figure has risen sharply from 19.21% in 2018-19, nearing the AFRBM Act’s prescribed ceiling of 28.5%.
“This alarming rise is the result of repeated breaches of fiscal deficit targets and the absence of a revenue surplus, as mandated by the Act,” Saikia said.
Saikia alleged that the Assam government, through its own budget documents and analysis reports from PRS India, CAG, and the Reserve Bank of India (RBI), has admitted to exceeding AFRBM limits year after year.
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Key examples cited include fiscal deficits of 4.83% in 2021-22, 6.5% in 2022-23, and 5.2% in 2023-24—each far above the permissible limit of 3.5%. Saikia argued that these violations have not only breached fiscal norms but also impacted constitutional rights under Articles 14, 19, and 21.
Highlighting the financial strain, Saikia pointed to a 107% increase in liabilities from Rs 59,425 crore in 2018-19 to Rs 1.23 lakh crore in 2022-23. CAG audits from recent years have flagged misclassifications of expenditure, understatement of deficits, and irregularities in grant disbursals.
For instance, in 2022-23, Rs 6,669 crore was misclassified as capital expenditure, and in 2021-22, deficit understatements amounted to Rs 933 crore (fiscal) and Rs 6,559 crore (revenue).
He further alleged that the composition of Assam’s debt shows excessive reliance on market borrowings, which accounted for nearly 82% of total borrowing in 2022-23. This debt, Saikia argued, is driving up interest payments—Rs 9,112 crore or 8% of revenue receipts in 2023-24—leaving little room for essential spending on education, healthcare, and infrastructure.
Beyond budgetary issues, Saikia accused the government of leveraging fiscally irresponsible cash transfer schemes and freebies without legislative approval or proper economic evaluation.
He called these schemes politically motivated, noting they are often announced during cabinet meetings without prior inclusion in the state budget. The opposition leader warned that such practices could influence voters ahead of the 2026 elections, undermining electoral fairness.
Quoting the Supreme Court’s observations in S. Subramaniam Balaji v. State of Tamil Nadu (2013), Saikia said while promises made in manifestos may not legally constitute corrupt practices, the distribution of freebies undeniably influences voters and distorts democratic balance.
Drawing parallels to the late 1980s, when the AGP government faced fiscal collapse resulting in six-month salary delays for government employees, Saikia warned that Assam may be heading toward a similar economic crisis if current trends continue unchecked.
He also referenced the state’s falling capital expenditure—a drop of over 20% from 2021-22 to 2022-23—and legal proceedings such as WP(C) 2220/2023, in which the Gauhati High Court noted that the government owed money to contractors while continuing to announce new giveaways.
In view of these issues, Saikia requested the Gauhati High Court to take suo motu cognizance under Article 226 of the Constitution for violations of the AFRBM Act and to issue a notice to the Assam government to explain its non-compliance with fiscal targets.
Saikia also sought a direction from the court to the CAG to conduct a time-bound audit on the state’s compliance with the AFRBM Act for 2024-25.
He said an interim stay should be placed on new cash transfer or freebie announcements not included in the budget, especially before the 2026 elections.
He advocated for an order for a detailed report within 90 days on existing cash benefit schemes, including their financial outlay, beneficiaries, and impact.
He also suggested to the court the formation of an expert committee comprising retired judges, financial experts, and opposition representatives to investigate the causes of fiscal mismanagement and recommend reforms within a year.
Saikia said the court should enforce draft binding rules under Section 9 of the AFRBM Act and implement safeguards under Section 7 of the Act.
Saikia concluded by asserting that judicial oversight is now critical to restoring financial accountability in Assam. Given the scale of fiscal mismanagement, he said the court’s intervention is necessary to protect the public interest and uphold constitutional governance.