Home BIG STORY Odisha loan burden expected to touch Rs 56,000 crore

Odisha loan burden expected to touch Rs 56,000 crore


Odisha Sun Times Bureau
Bhubaneswar, Dec 26:

The overall loan burden of Odisha is likely to touch Rs 56,000 crore by the end of this fiscal.

Pic Courtesy: blog.credit.com
Pic Courtesy: blog.credit.com

Even though the loans stand at 17 percent of Gross State Domestic Product (GSDP) of the state, which is well within the 25 percent target mandated in FRBM (Fiscal Responsibility and Budget Management) Act, 2005; it continues to raise political questions given the poor record of implementation of projects and serial announcement of populist schemes by the government.

The overall borrowing target has been pegged at Rs 12,800 crore for this fiscal.

Notably, the State Government recently raised an additional Rs 500 crore from the open market via sale of government securities to finance capital projects. The sale of stock was done through an auction conducted by RBI (Reserve Bank of India).

Overall, the government has raised Rs 4,000 crore from the open market. It resorted to market borrowings for the first time after 2006-7.

Resource crunch and an increased need to step up capital outlay had prompted the state government to take the Centre’s nod to raise funds from the open market, said a source in the government.