The loan burden on the State Government is likely to cross the Rs 65,000-crore mark by March 31, 2017.
The loan burden, which was stable for the past four fiscals from 2010-11 to 2013-14, is again on rise gradually, according to reports.
In 2000-01, the burden was Rs 21,001 crore. Afterwards, it rose to Rs 39,137 crore in 2010-11. Although it fell to Rs 38,589 crore and Rs 37,980 crore in 2011-12 and 2012-13, respectively, it increased to Rs 38,666 crore in 2013-14 and Rs 46,746 crore in 2014-15. The burden is expected to be more than Rs 56,640 crore by the end of this fiscal.
In the wake of less allocation towards implementation of the Centrally-sponsored schemes, the State Government is likely to lay more emphasis on market borrowing in the 2016-17 Budget, feel financial experts. This is likely to increase the State’s loan burden to Rs 65,000 crore during 2016-17. While the Government repaid Rs 2,782 crore as principal amount in 2000-01, Rs 2,083 crore was repaid in 2010-11.
In 2011-12, a principal loan amount worth Rs 2,328 crore was repaid while it was Rs 3,180 crore in 2012-13, Rs 2,293 crore in 2013-14 and Rs 3,100 crore in 2014-15.
The Government is planning to repay around Rs 2,906 crore this fiscal. The State is to repay Rs 5,350 crore towards interest in 2015-16 while Rs 4,229 crore was repaid in 2014-15 as interest.
Notably, around 42 per cent of the amount being availed as loan is spent on loan
repayment and paying its employees’ salaries and pensions.
While the State’s total budget was Rs 12,604 crore and its revenue income was only Rs 2,869 crore in 2000-01, the amounts increased to Rs 94,000 crore and Rs 30,294 crore, respectively, in 2015-16.