Bhopal: Just before the formation of new government in Madhya Pradesh, the debt-ridden state government led by acting Chief Minister Shivraj Singh Chauhan has decided to take a loan of 800 crore rupees from Reserve Bank of India.
State Congress leadership has immediately questioned the government move and stated that the result of this election if favours BJP they will take care of the loan amount, but if Congress is voted to powers they will have to bear the burnt. Looking at the current financial situation it won’t be a cake walk for Congress to run the government in the state smoothly.
The Finance Department has asked for an approval of the amount with 8.44% interest rate for the period of ten years.
The state government has issued the notification two days back in this regard. Currently, the Shivraj government is under the load of 1.75 lakh crore loan.
However, the GST tax revenue has increased in the past months, still, several govt projects are pending and this loan amount will be used for that. This loan is taken in the name of development and irrigation project.
Reports suggest that the loan amount is increasing day-by-day and the government is still taking loans of thousands of crores monthly from the market.
Congress party has raised an objection to this move and said that what was the urgency to take a loan when the results are days ahead? Why can’t they wait for a few more days when the new government is formed? They have also lodged a complaint with the State Election Commission and said that when the model code of conduct is implemented how such steps a temporary government can take?
Bhartiya Janata Party leader and state Finance Minister Jayant Malaiya responded to the Congress allegations and said, “Taking loans for development work is not wrong, keeping in mind the people’s problem it is being done accordingly.”
As per reports, the state government has taken a loan of 1,2500 crores since April 1, 2018, this year. If this 800 crore loan is added the total amount would be 13300 crores which will be the headache of the new government.