By A Newsman
Kolkata, 04 August: MAMATA Banerjee government, which inherited a debt of 1.93 lakh crore from the previous Left Front regime in 2011 and has further expanded the debt burden since then, will be borrowing another Rs 2,000 crore from market later this week.
According to the state finance department, the money will be borrowed “towards meeting the requirement for developmental expenditure.” Centre has given its nod to this and the state government will be raising the amount by selling its Securities through the Reserve Bank of India.
The Rs 2,000 crore is being borrowed for a term of 10 years and the principal amount is scheduled to be repaid on 09 August 2027. In between, state government will pay the interest to the borrowers on 09 February and 09 August every year.
This fresh borrowing would add to the outstanding debt burden of Mamata Banerjee government that stood at Rs 3.06 lakh crore as on 31 March this. In the past six years, the present government has added around Rs 1.13-lakh crore debt to the Rs 1.93 lakh crore that the Left had borrowed in 34 years.
The Chief Minister has said on multiple occasions recently that her government was paying Rs 40,000 crore interest on loans per annum and this was affecting development projects.