Chhattisgarh: Public Debt composition- Internal and External Debt including World Bank loans, Institutional and non institutional sources of Rural Credit in Chhattisgarh

The State Government manages public-debt through two sources-

Internal Loan and
Loan and Advance from Central Government. The Chhattisgarh Government Manages internal loan through following sources:

The Percentage share of Internal Loan of State Government has increased from 65.73 percent in the year 2001-02 to 95.44 percent in the year 2005-06 and after that it has declined to 54.33 percent in the year 2007-08, again it has increased to 89.81 percent in the year 2009-10 respectively. on the contrary, the percentage of Loans & Advances from Central Government has declined from 34.27 percent in the year 2001-02 to 4.56 percent in the year 2005-06. It has jumped to 45.67 percent in the year 2007-08 and after that it has declined to 10.19 percent in the year 2009-10 respectively. The basic cause of using the low percentage of Internal loan in the years 2006-07 & 2007- 08 us the full control on market borrowings. The State Government has not borrowed loans from the market and only financial institutions loans are used for financing. The plan expenditure of the State; but for the last two years market borrowing is again used for financing the plan expenditure of the State Government so it has jumped to 87.74 & 89.81 percent in the year 2008-09 & 2009-10 respectively.

Under Internal Loan of State Government, the percentage share of Market Borrowing has increased from 27.03 percent in the year 2001-02 to 53.25 percent in the year 2009-10. The contribution of National Small Saving Fund has increased from 32.92 percent in the year 2001-02 to 81.66 percent in the year 2006-07 but after that has declined to I 0.65 percent in the year 2009-10 respectively. Loans from NABARD and NSSF have also contributed the internal loans of the State Government.

Public Debt of the Chhattisgarh State is also shown as percentage of Gross State Domestic Product of the State. Table 6.4 reveals that the percentages of Internal Loan has increased initially from 2.21 percent of Gross State Domestic Product in the year 2001-02 to 5.01 percent in the year 2003-04 after that it has sharply declined to 0.21 percent in the year 2007-08. The percentages of Loan & Advances from Central Government has also declined from 1.15 percent of Gross State Domestic Product to 0.18 percent in the year 2007-08 respectively. The percentage of Total Debt to Gross State Domestic Product of the Chhattisgarh Government has also declined from 3.36 percent in the year 2001-02 to 0.38 percent in the year 2007-08 and the percentage of Net Debt to Gross State Domestic Product has become negative in the year 2007-08. lt reveals that the Chhattisgarh Government has properly managed the Public Debt.

Rural credit in chhatishgarh

When small co-operative societies were formed in rural areas long long ago , they became successful and co-operative movement in the country progressed step by step. These co-operative societies, mostly formed on community basis , were mainly artisan co-operative societies ,service co-operative societies ,cottage Industry co-operative societies, handloom handicraft societies, Marketing co-operative societies ,etc. All these co-operative societies needed finance from outside beyond the share capital raised by them. Therefore co-operative societies on community basis were formed on community basis to meet the credit needs of the community members in the rural areas. This was the beginning of the co-operative credit movement in rural areas. This happened about a century back in our country. These rural credit co-operative societies were the forerunners of the present day rural co-operative banks.

Many of these credit societies expanded their activities, accepting deposits from outside the co-operative Society members and termed themselves as Banks. This transformation of the Rural credit societies into Rural co-operative banks took place gradually till the Banking Regulation Act was amended in 1966 bringing all rural co-operative banks under the purview of this Act imposing certain conditions.

Thus the Rural Co-operative Banks were treated as full fledged banks in rural areas with prescribed operational limit. The Rural co-operative banks now plays a vital role to meet the banking ,credit and financial needs of the common and poor people in rural areas. The banks accept deposits from rural people and gives them loans and advances on many scores under different lending schemes. In doing these banking operations they are able to build their own reserve fund and WORKING CAPITAL apart from creating their own assets. The Rural co-operative banks carefully consider the credit needs of shareholders and customers and give loans and advances accordingly to the customers and shareholders. The members and customers of the banks get the loans and advances on easy terms. The common man , small traders ,artisans and needy customers in rural areas are greatly benefited by the Rural co-operative Banks.

Rural co-operative Bank constitutes an important organ of non-agriculture credit sector. It is conceived as small man’s banks, and serves as an important constituent of multi-agency banking system. Recently these banks have recorded an impressive Growth after extension of the provisions of the Banking Regulation Act, 1949. The number has increased from 1091 as on the 1st march 1966 to 1346 at the end of June 1967 to Rs.3250 crores as on 30th june 1985. while the advances increased from Rs. 107 crores to Rs. 2600 crores during the period. Thus the rural co-operative banks are striving to fulfill their objectives of improving the economic living of poor artisans, traders, business men and others in rural areas. In Chhattishgarh, about 25 percent people are living in rural and semi-rural areas. The rural co-operative banks are to cater to the need of these people on similar footing as primary co-operative societies to the poor people in rural areas.

Public debt is the total amount of Money that a government owes to its creditors. It can be divided into two categories: internal debt and external debt. Internal debt is the debt that a government owes to its own citizens, while external debt is the debt that a government owes to foreign creditors.

The composition of public debt can vary from country to country. In some countries, internal debt may be the majority of the total debt, while in other countries, external debt may be the majority. The composition of public debt can also change over time. For example, during a Recession, a government may borrow more money from foreign creditors in order to finance its budget deficit.

The World Bank is a multilateral Development Bank that provides loans to developing countries. The World Bank’s loans are used to finance a variety of projects, including Infrastructure-2/”>INFRASTRUCTURE, Education, and Health care. The World Bank’s loans are typically repaid over a period of 20-30 years.

Institutional sources of rural credit in Chhattisgarh include Commercial Banks, Cooperative banks, and Regional Rural Banks. Commercial banks are the largest providers of rural credit in Chhattisgarh. Cooperative banks are owned and operated by farmers, and they provide credit to farmers at lower interest rates than commercial banks. Regional rural banks are joint ventures between the government and commercial banks, and they provide credit to farmers in rural areas.

Non-institutional sources of rural credit in Chhattisgarh include moneylenders, landlords, and traders. Moneylenders charge high interest rates on loans, and they often exploit farmers. Landlords may provide loans to their tenants, but they often charge high interest rates and require tenants to work on their land in exchange for the loan. Traders may provide loans to farmers, but they often charge high interest rates and require farmers to sell their produce to the trader at a low price.

The following are some of the challenges faced by the rural credit system in Chhattisgarh:

High interest rates: The interest rates charged by moneylenders, landlords, and traders are often very high. This can make it difficult for farmers to repay their loans, and it can also lead to exploitation.
Lack of access to institutional credit: Many farmers do not have access to credit from institutional sources, such as commercial banks and cooperative banks. This can be due to a number of factors, including the lack of collateral, the high interest rates charged by institutional lenders, and the complex application process.
Inefficient credit delivery system: The credit delivery system in Chhattisgarh is often inefficient. This can lead to delays in the disbursement of loans, and it can also make it difficult for farmers to obtain the loans they need.
Lack of awareness about government schemes: Many farmers are not aware of the government schemes that are available to them. This can make it difficult for them to access the credit they need.

The following are some of the measures that can be taken to address the challenges faced by the rural credit system in Chhattisgarh:

Reduce interest rates: The interest rates charged by moneylenders, landlords, and traders should be reduced. This can be done by increasing the supply of credit from institutional sources, such as commercial banks and cooperative banks.
Increase access to institutional credit: The government should take steps to increase the access of farmers to credit from institutional sources. This can be done by simplifying the application process, reducing the interest rates charged by institutional lenders, and providing collateral support to farmers.
Improve the efficiency of the credit delivery system: The government should take steps to improve the efficiency of the credit delivery system. This can be done by streamlining the application process, reducing the delays in the disbursement of loans, and increasing the number of branches of commercial banks and cooperative banks in rural areas.
Increase awareness about government schemes: The government should take steps to increase awareness about the government schemes that are available to farmers. This can be done through public awareness campaigns, the use of mass media, and the establishment of farmer helplines.

Public Debt Composition- Internal and External Debt including World Bank loans

What is public debt?
Public debt is the total amount of money that a government owes to its creditors. It can be divided into internal debt, which is owed to domestic creditors, and external debt, which is owed to foreign creditors.
What is the composition of Chhattisgarh’s public debt?
Chhattisgarh’s public debt is composed of both internal and external debt. As of March 2022, the state’s internal debt was Rs. 1,05,000 crore, while its external debt was Rs. 10,000 crore.
What are the sources of Chhattisgarh’s public debt?
Chhattisgarh’s public debt is sourced from a variety of sources, including market borrowings, loans from the Reserve Bank of India, and loans from the World Bank.
What are the implications of Chhattisgarh’s public debt?
Chhattisgarh’s public debt is a significant burden on the state’s finances. The state’s debt service payments are a major drain on its Resources, and the debt is also a major risk factor for the state’s economy.

Institutional and non institutional sources of Rural Credit in Chhattisgarh

What are the institutional sources of rural credit in Chhattisgarh?
The institutional sources of rural credit in Chhattisgarh include commercial banks, cooperative banks, and regional rural banks.
What are the non-institutional sources of rural credit in Chhattisgarh?
The non-institutional sources of rural credit in Chhattisgarh include moneylenders, landlords, and traders.
What are the advantages and disadvantages of institutional sources of rural credit?
The advantages of institutional sources of rural credit include the following:
- They are regulated by the government, which ensures that they are safe and Sound.
- They offer a variety of loan products that are tailored to the needs of farmers.
- They have a wide Network of branches, which makes it easy for farmers to access credit.

The disadvantages of institutional sources of rural credit include the following:

* They have high interest rates.
* They have a lot of paperwork, which can be time-consuming and difficult for farmers to understand.
* They may not be willing to lend to farmers who are considered to be high-risk borrowers.

What are the advantages and disadvantages of non-institutional sources of rural credit?
The advantages of non-institutional sources of rural credit include the following:
- They offer quick and easy access to credit.
- They have lower interest rates than institutional sources of credit.
- They are more flexible in their lending terms.

The disadvantages of non-institutional sources of rural credit include the following:

* They are not regulated by the government, which means that they may be unsafe and unsound.
* They may charge exorbitant interest rates.
* They may engage in predatory lending practices.

Which of the following is not a source of rural credit in Chhattisgarh?
(A) Institutional sources
(B) Non-institutional sources
(C) World Bank loans
(D) Cooperative banks
The Chhattisgarh government has recently announced a new scheme to provide rural credit. What is the name of this scheme?
(A) Rajiv Gandhi Grameen Vidyutikaran Yojana
(B) Pradhan Mantri Jan Dhan Yojana
(C) Atal Pension Yojana
(D) Chhattisgarh Rural Credit Scheme
The Chhattisgarh government has set a target of providing rural credit to 10 million households by 2022. What is the current level of rural credit in Chhattisgarh?
(A) 5 million households
(B) 7 million households
(C) 9 million households
(D) 11 million households
Which of the following is not a benefit of rural credit?
(A) It helps farmers to increase their production
(B) It helps farmers to purchase inputs
(C) It helps farmers to meet their household expenses
(D) It helps farmers to repay their loans
Which of the following is a challenge in the delivery of rural credit?
(A) Lack of awareness about rural credit schemes
(B) Lack of access to banks
(C) High interest rates
(D) All of the above
Which of the following is a measure taken by the government to address the challenge of lack of awareness about rural credit schemes?
(A) Conducting awareness campaigns
(B) Providing information through various channels
(C) Providing training to bank staff
(D) All of the above
Which of the following is a measure taken by the government to address the challenge of lack of access to banks?
(A) Opening new bank branches in rural areas
(B) Providing mobile banking Services
(C) Providing ATMs in rural areas
(D) All of the above
Which of the following is a measure taken by the government to address the challenge of high interest rates?
(A) Providing subsidies on interest rates
(B) Providing loans at concessional rates
(C) Providing loans through government-sponsored schemes
(D) All of the above
Which of the following is a non-institutional source of rural credit?
(A) Moneylenders
(B) Traders
(C) Landlords
(D) All of the above
Which of the following is a risk associated with borrowing from non-institutional sources?
(A) High interest rates
(B) Exploitation by lenders
(C) Lack of transparency
(D) All of the above