Debt-ridden state likely to face overdraft soon
IMPHAL18th Dec: While the coalition government led by BJP is trying to fulfill the promises made during the election time, the state is likely to face financial crisis as its loan debts is on the rise.
The current loan debt of the state has reached around Rs 1300 crore including the overall debt of around Rs 500 crore incurred during the Congress government. Moreover, failure to provide financial liabilities of various departments will make completion of ongoing projects and initiating new projects difficult.
Informed sources revealed that overall debt of the state as on March 16, 2017 at the time of formation of the new government led by BJP was around Rs 500 crore. The amount had been borrowed from different funding agencies.
While the ways and means capacity of the state is Rs 195 crore and special drawing right (SDR) is Rs 50 crore, the total amount of around Rs 250 crore that can be borrowed is for about 90 days only.
With the coming of NITI Aayog, the budget allocated to the state in a month is around Rs 475 crore and the RBI has deducted an amount of Rs 200 crore from the state budget as the capital repayment maturity on December 12. In addition to this, the state is spending an amount of around Rs 50 crore every month on paying loan interests.
Out of the Rs 475 crore budget allocated, the government has to carry forward its governance with the remaining amount of around Rs 225 crore, sources pointed out.
It has also been informed that the state has to make a capital repayment of around Rs 103 crore to RBI in January next year. Moreover, as the government is to pay interest of around Rs 50 crore January next, it is only getting clearer that the state may face overdraft in January next year.
In 2017-2018, the financial requirement of the state was around Rs 12,000 crore, However, it has been raised to around Rs 13,000 crore in the financial year 2018-2019. With pending deficit in the state account already reached Rs 79 crore, the government is likely to face difficulties in completing its ongoing projects like construction of Capital project, provision of drinking water facilities, Thoubal multipurpose project and Dolaithabi project before PM Narendra Modi’s scheduled visit in January next year.
The sources further informed that revenue of the state for the year is estimated at around Rs 1000 crore including GST share. There is a huge gap between the expected revenue and financial debt currently faced by the state.
It has been observed that the hike in financial debt of the state was mainly because of recruitment in various posts which do not have any sanction during the term of previous government. Moreover, commencing of projects which require huge budget with small amount in hand is responsible for raising financial liability.
The financial liability of works department is around Rs 530 crore, that of PHED is around Rs 200 crore, that of IFCD is around Rs 435 crore and a huge amount of money is yet to be paid for various institutions. Reflecting upon the current financial status of the state, one can ask if the BJP led government will be able to fulfill promises like provision of drinking water to every household, free education to girls upto graduation, government or private jobs to at least one member in every family, etc.
Considering all this, to gain faith of the people and to solve the issues of debt currently faced by the state, a huge package from the central government is required.