Team News Riveting
Raipur, February 2
The Chhattisgarh government has indicated that it will borrow Rs 6000 crore in Q4 (January-March) of the financial year 2021-22 (FY22) by auctioning bonds, called State Development Loans.
It was mentioned in the Reserve Bank of India (RBI)’s borrowing calendar issued at the end of third quarter (Q3) ended December 31, 2021. The Reserve Bank of India, in consultation with the State Governments and Union Territories (UTs), announces that the quantum of total market borrowings by the State Governments/UTs for the quarter January – March 2022, is expected to be Rs 3,09,971.74 crore.
The State Development Loans are the major source of borrowing for the States to fund their fiscal deficit that arises when total expenditure exceeds total revenue. The Congress government led by Chief Minister Bhupesh Baghel in Chhattisgarh has launched many projects with a focus to boost rural economy.
However, Chhattisgarh’s fiscal deficit for 2021-22 is targeted at Rs 17,461 crore (4.56 per cent of GSDP). In 2020-21, the revised estimate for fiscal deficit is expected to be 6.52 per cent of GSDP, much higher than the budget estimate of 3.18 per cent of GSDP.
According to the latest report of the Comptroller and Auditor General of India, the total outstanding debt of the Chhattisgarh government stood at Rs 78,712 crore at the end of financial year 2019-20. The audit watchdog had underlined that borrowed funds should ideally be used to fund capital creation and developmental activities. Using borrowed funds for meeting current consumption and repayment of interest on outstanding loans is not sustainable in the long run and would impact the creation of assets, it had added.
The Chhattisgarh government representatives could not be contacted for a version on the issue.
