RBI
data show state has raised Rs 17,300 crore through state development loan
Namrata
Acharya / Kolkata
BUSINESS
STANDARD, January 25, 2013, 13:41 IST
In
continuation with the brisk borrowing spree, West Bengal has emerged as the top
borrower this financial year too.
Data
from Reserve Bank of India (RBI) show, West Bengal has raised Rs 17,300 crore
through state development loan, so far in the financial year. This year, the
state government has a market borrowing limit of Rs 22,821 crore, which leaves
Rs 5,521 crore for the next two months for the present financial year.
Notably,
in spite of a cushion of Rs 5,521 crore for the next two months, West Bengal
chief minister Mamata Banerjee, has been ruing that the state has been denied
to raise debt.
“They
(Centre) had allowed the Left to make so much debt, but they have been denying
us the same. Why are you trying to snatch away our livelihood? The people of
Bengal will have to assert their rights and demand that the centre stop taking
away all the money,” Banerjee had recently said at a public meeting.
West
Bengal is seeking a moratorium on interest and repayment totaling Rs 22,000
crore on its debt for the next three years, and formulation of a debt
restructuring exercise over the interim period. The debt restructuring should
include debt elimination, increasing repayment tenure and reducing interest
rate on loans.
“Stop
taking the interest. We want justice,” the chief minister had recently
said.
However,
the opposition Left Front government has been quick to retort, when yesterday,
Asim Dasgupta, former finance minister, West Bengal, said the burgeoning debt
of the state was on account of higher
expenditure, rather than old debt.
"The
new government has been making some misleading statements. If Rs 25,000 crore
is spent on debt repayment and we add Rs 41,000 crore paid towards salary and
pension, there would still be Rs 34,000 crore left out of the Rs 1 lakh crore
receipt," said Dasgupta.
"The
people of the state would like to know if there is extra-budgetary expenditure
or are they unable to provide utilization certificates," he said.
West
Bengal's debt burden of according to the last Budget document was Rs 2.08 lakh
crore. The outstanding debt of the government is set to increase to Rs 2.26
lakh crore in the present fiscal, making it one of the most indebted state in
terms of tax to GSDP ratio.
Last
financial year, West Bengal availed of relaxation of the Fiscal Responsibility
and Budget Management Act twice, pushing
the borrowing of the state to Rs 22,423 crore.
The
continual deterioration by the state of finances is also evident from a recent
report on State Finances: Study of Budgets 2012-13.
In
2011-12 (RE), all states were able to contain their interest payment to revenue
receipt ratio (IP-RR) to 15%, except in case of Gujarat, Kerala, West Bengal
and Punjab. West Bengal had the highest IP-RR ratio at 27.20%, with
Chhattisgarh recording the lowest at 4.5%.
According
to the state budget document, this financial year, West Bengal's revenue
receipt is projected to be Rs 76,943
crore and expenditure is Rs 83,801 crore leaving a huge revenue deficit of Rs 6,585 crore.
West
Bengal's expense on salaries alone is set to increase from Rs 28,899 crore to
Rs 31,184 crore by the end of this fiscal, which is about 37% of the projected
expenditure of the government.
Similarly,
the cost of pension and other retirement benefits is projected to increase from
Rs 8,385 crore to Rs 9,582 crore.
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