Bhopal In a bid to meet the state’s financial needs, the Madhya Pradesh government is set to secure a loan worth Rs 1,000 crore for a period of 10 years.
The government is already reeling under a debt of Rs 1.75 lakh crore. Ever since it took charge in December last year, the Congress government, led by Kamal Nath, has taken 15 loans with the last one worth Rs 2,000 crore being secured as recent as September 4.
In face of criticism from the opposition, government officials tried to justify the fresh loan saying liquidity was important to keep developmental and public welfare works afloat.
Recently, the government had levied 5% value added tax (VAT) on petrol and diesel to generate additional funds in the wake of the massive floods that have caused massive damage across the state. At the time, it had promised the measure wasn’t permanent.
Among other obligations, farm loan waiver, repair of roads and wheat bonus to farmers have excessively stretched the state’s finances and have forced the government to take frequent loans.
Nath and his ministers have continued to claim that the previous BJP dispensation, led by Shivraj Singh Chouhan, had left behind an empty coffer.
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