Madhya Pradesh government is continuously borrowing funds. So far, the government, which is burdened with a debt of more than Rs 3 lakh crore, has once again taken a loan. This time the government has borrowed Rs 2,000 crore. Notably, this is the third time in the last 13 days that the government has taken a loan.
Actually this loan has been taken at the rate of 7.88 percent interest. The government will repay this loan by the year 2023. The Shivraj government had earlier taken the loan on October 14 and October 20. Both the times the government had taken a loan of Rs 1,000 crore. But this time Rs 2,000 crore has been taken. In this way, the government has taken a loan of 4000 crores within the last 2 weeks.
According to the information, the Madhya Pradesh government is going through a period of severe economic crisis. The has got a debt of more than Rs 3 lakh 29 thousand crore whereas the total annual budget of the state government is also not so much. This means that now the government has taken more loans than the total budget of the state. Due to huge debt, the Shivraj government of the state has to pay a huge amount every year as interest.
According to the information, under the Fiscal Responsibility and Budget Management Act, the state government can take loans up to 4 percent of the state’s GDP. The government has the eligibility to take a loan of more than 40 thousand crore rupees, but so far the government has taken a loan of only eight thousand crores.