The State’s public debt is mounting and is set to cross ₹3 lakh crore mark for the first time by the end of next financial year.
The State’s public debt at the end of the next financial year is projected at ₹3.29 lakh crore, close to ₹45,000 crore higher than the current fiscal’s ₹2.85 lakh crore. Of the total debt, open market loans take a major chunk contributing ₹2.89 lakh crore, loans from Central Government ₹7,188 crore, loans from autonomous bodies ₹13,591 crore and those from special securities (small savings) provident fund and others ₹19,336 crore.
The heavy dependence on borrowings could be seen from the fact that the government had made a provision for raising ₹59,672 crore during the next fiscal for meeting its financial commitments. Of these, open market loans would be ₹53,970 crore, loans from the Central Government - ₹4,102 crore and other loans - ₹1,500 crore. Borrowings and other liabilities during the current fiscal are projected at ₹49,350 crore.
Finance Department officials however maintained that the provision for borrowings was well within the limits prescribed. The State’s borrowings continued to sustain at 25% of the GSDP and the government was adhering to the norms while opting for them. The State made a provision of ₹18,921 crore for debt servicing during the next fiscal, up ₹1,400 crore from the current fiscal’s ₹17,584 crore.
The State had also significantly enhanced the provision grants in aid and contributions to ₹41,001 crore during the next fiscal. The budget estimates for grants in aid and contributions for the current financial year were projected at ₹38,669 crore which however came down to ₹28,669 crore in the revised estimates. The actuals under the head did not cross 20% till the end of January going by the data released by the Comptroller and Auditor General of India recently.
“The Centre has to release funds as assured in the State Reorganisation Act and other acts. We will continue to make our claims regarding the releases. We cannot altogether leave the provisions because the Centre has not released the funds,” a senior official told The Hindu.
