Mounting debt: MP takes fresh Rs 4500 cr loan
Bhopal: The state govt on Tuesday initiated formalities for a fresh loan of Rs 4,500 crore from the Centre, its second borrowing this financial year, officials in know of the development said.
The move pushed the state's total debt past Rs 4.30 lakh crore, well beyond its annual budget of Rs 4,21,032 crore.
The total debt of the MP govt was Rs 421740.27 cr as on March 31. The MP govt accepts it to take frequent loans. The govt stated the loans taken by the govt are utilised for financing productive development programmes and projects to be implemented in the state. It mainly bears the cost of development schemes.
Consent of central govt has been obtained to the floatation of this loan as required by Article 293 (3) of the constitution of India. Loans taken from the central govt and from other sources were mainly utilized for development of the state and for the creation of remunerative assets such as construction of irrigation dams, improvement of transport services, grant of loans to third parties like cultivators, local bodies, loan to power generation, power transmission among others, states the state govt while taking a loan.
Despite the rising loan burden, the govt has not hesitated in buying a state plane, new cars for ministers and renovation of ministers' bungalows.
On July 10 last year, the state govt cleared a proposal to buy a jet plane worth over Rs 230 cr. Among the major financial responsibilities of the govt is the Ladli Behna scheme, which needs over Rs 1,550 cr every month.
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