Mumbai

Debt continues to rise

State bearing liability of infrastructure projects

As per the 2020-21 budget estimates, the State is reeling under debt of ₹5,20,717 crore, rising from ₹4,64,020 crore the previous fiscal. The debt percentage to the Gross State Domestic Product stands at 16.2% compared to 16.1% the previous fiscal.

Finance Minister Ajit Pawar said, “During the last five years, the State has raised loans of ₹2,82,448 crore. The amount of guarantees given by the government was ₹7,709 crore at the end of 2014. It has now increased to ₹46,891 crore.”

Meanwhile, infrastructure projects cost the government ₹2,78,271 crore. “The State government has to bear direct and indirect liability of these projects,” he said. While the opposition Bharatiya Janata Party has claimed that the debt is within the limits prescribed by the 14th Finance Commission, leaders of the ruling coalition have said liabilities of infrastructure projects are also part of the total debt.

Mr. Pawar also pointed out the Centre’s delay in releasing the State’s share of funds. He said, “The share in the Central taxes that Maharashtra is expected to get in accordance with the recommendations of the 14th Finance Commission has come down from ₹44,672 crore to ₹36,220 crore in the revised estimates of 2019-20. There is also a delay in getting the Goods and Services Tax compensation from the Centre. As a result, funding the expenditure on development works is becoming difficult.”

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Printable version | Jun 5, 2020 10:08:18 AM | https://www.thehindu.com/news/cities/mumbai/debt-continues-to-rise/article31005020.ece

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