Meghalaya’s Public Debt Rises Over 20%: CAG Warns of Potential Debt Trap
By Our Reporter
SHILLONG, Aug 31: Meghalaya’s public debt has surged by over 20% from 2021-22 to 2022-23, as revealed by the Comptroller and Auditor General (CAG) in a report presented in the Assembly on Friday. The report raises alarms about a potential debt trap for the state.
The CAG report details liabilities on the consolidated fund of the state, which include market loans, loans from financial institutions, and loans and advances from the central government. For the fiscal year 2022-23, public debt liabilities reached Rs 14,637.12 crore. This debt is broken down into Rs 11,285.50 crore from market loans, Rs 1,349.04 crore from financial institutions, and Rs 2,002.58 crore from central government loans and advances.
The increase in public debt from 2021-22 (Rs 12,165.98 crore) to 2022-23 was 20.31%. The primary drivers of this surge were a 117.40% increase in loans and advances from the central government and a 13.79% rise in market loans. The CAG noted that liabilities on the consolidated fund climbed by 20.74% in 2022-23, primarily fueled by the same factors.
The report highlights that Meghalaya’s outstanding liabilities have risen from Rs 10,623.68 crore as of March 31, 2019, to Rs 18,442 crore by March 31, 2023. Compared to the previous year, the state’s outstanding liabilities at the end of 2022-23 saw a 19.13% (Rs 2961.23 crore) increase.
Meghalaya has failed to meet the 28% total outstanding liabilities to Gross State Domestic Product (GSDP) ratio target set by the Meghalaya Fiscal Responsibility and Budget Management Act, 2006, for the period between 2018-19 and 2022-23. Notably, the state holds the fourth-highest outstanding liabilities-GSDP ratio nationwide and ranks third among the 11 Northeastern and Himalayan states.
“This indicates mounting liabilities of the state. The state may take proactive measures to address this concern and avoid falling into a potential debt trap,” the CAG warned.
Original Story https://theshillongtimes.com/2024/09/01/meghalaya-may-fall-into-debt-trap-cautions-cag/
Category : MEGHALAYA
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