Meghalaya Triumphs: Ranks Fourth Nationwide in Outstanding Liabilities to GSDP Ratio, Shines Third in Northeast!
Meghalaya ranks fourth highest among Indian states and UTs in Outstanding Liabilities to Gross State Domestic Product (GSDP) ratio, and third among 11 Northeastern and Himalayan states, according to a recent report by the Comptroller and Auditor General of India (CAG). This highlights the growing financial liabilities of the state, cautioning authorities to take proactive measures to avoid a potential debt trap.
The report reveals that liabilities on the Consolidated Fund of the state include market loans, loans from financial institutions, and loans and advances from the Government of India (GOI). In the fiscal year 2022-23, public debt stood at Rs 14,637.12 crore, comprising market loans of Rs 11,285.50 crore, loans from financial institutions of Rs 1,349.04 crore, and Rs 2,002.58 crore in loans and advances from the GOI.
This marked a 20.31 percent increase in public debt from the previous fiscal year (2021-22), which amounted to Rs 12,165.98 crore. The surge is primarily attributed to a significant rise in loans and advances from the GOI (117.40 percent) and market loans (13.79 percent). Liabilities on the state’s Consolidated Fund increased by 20.74 percent in 2022-23, driven mainly by a 13.79 percent increase in market loans and a 161.90 percent rise in GOI loans and advances (excluding a back-to-back loan to state for GST compensation shortfall of Rs 253.16 crore).
Furthermore, the state failed to meet the prescribed target of keeping the outstanding liabilities to GSDP ratio at 28 percent, as mandated by the Meghalaya Fiscal Responsibility and Budget Management (MFRBM) Act, 2006, for the period from 2018-19 to 2022-23.
This growing debt underscores the urgency for Meghalaya to implement corrective financial strategies to avert a deepening fiscal crisis.
Original Story https://www.indiatodayne.in/meghalaya/story/meghalaya-ranks-fourth-in-outstanding-liabilities-to-gsdp-ratio-nationwide-third-in-northeast-1084035-2024-09-02?utm_source=rssfeed
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