State govt's debt stock mounts to whopping Rs 2L cr

State govt's debt stock mounts to whopping Rs 2L cr

The Siddaramaiah government has borrowed Rs 90,000 crore during the last four years.
The total debt stock in 2012-13, when the present Congress government came to power, stood at Rs 1.18 lakh crore and will touch Rs 2.08 lakh crore when Chief Minister Siddaramaiah, who also holds the finance portfolio, presents the budget proposals for 2017-18.

The details about the borrowings of the state government over the years have been hosted on the website of Reserve Bank of India. 

As leader of the Opposition, Siddaramaiah had criticised the borrowing spree of the then BJP government stating that the financial health of the state was taking a beating.
The BJP government (2008-2013), on an average, borrowed Rs 12,000 crore per annum. However, the RBI data reveals the quantum of  borrowings has increased during the present government’s tenure.

Presenting his first budget in July 2013, in the present dispensation, Siddaramaiah had said, “If the previous government had taken steps to improve tax collection, prevent leakages and stop evasion, then certainly our revenues would have been higher. As a consequence, dependence on borrowings would have come down. As you are aware presently, loans and borrowings are costly and availing such loans would place a huge debt burden on future generations.”

The total public debt when Siddaramaiah was deputy chief minister and had also held the finance portfolio in 2005-06 stood at Rs 56,027 crore. In 2007, it mounted to Rs 63,844 crore and in 2016-17 it has crossed the dubious landmark of Rs 2 lakh crore.
According to officers of the finance department, the total liabilities of the state government is within limits as it is below 25% of the Gross State Domestic Product as stipulated in the Karnataka Fiscal Responsibility Act.
DH News Service

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry