📄 Abstract
This study examines, sustainability of public debt, its threshold, and its relationship with economic growth in Odisha, India, and, using data from 2005-06 to 2023-24. Employing traditional methods (Domar model, Indicator Approach), and econometric methods (unit root and cointegration tests), and nonlinear regression techniques for the study and the analysis identifies a debt-to-GSDP threshold of 29.65%, confirming Odisha?s debt sustainability. The findings highlight the state's successful fiscal reforms, achieving macroeconomic stability, debt sustainability, and economic growth. However, challenges in developmental expenditure management, particularly in capital outlay, underscore the need for strategic debt management to sustain growth while maintaining fiscal stability.
🏷️ Keywords
📚 How to Cite:
Bhagyashree Pradhan , DEBT SUSTAINABILITY, OPTIMUM ECONOMIC GROWTH AND OPTIMUM LEVEL DEBT: A CASE STUDY OF ODISHA STATE FINANCES , Volume 13 , Issue 3, april 2025, International Journal of Indian Economic Light(JIEL) , DOI: https://doi.org/10.36713/epra21329