Debt-ridden government finances and slow economic growth are two sides of the same coin. Governments that borrow recklessly to pay for unproductive schemes actively weaken economic growth. 3 min read May 9, 2026 07:00 AM IST First published on: May 9, 2026 at 07:00 AM IST The clear results of the recent assembly elections – be it the emphatic return of the incumbent in Assam or the ringing out of the old in West Bengal, Tamil Nadu and Kerala — underscore the need for the new governments to urgently address the problems plaguing the economies. The most pressing task is to raise the rate of economic growth. Of the four states, only Assam has done well enough, registering a compound annual growth rate of 11.4 per cent between 2014-15 and 2023-24. Over the same period, Tamil Nadu’s economy expanded by 10.3 per cent while the growth rates of Kerala (8.6 per cent) and West Bengal (9.1 per cent) could not even reach double digits. For perspective, between 2004 and 2026, India’s overall CAGR has been 12.3 per cent.…