MP Govt Can Borrow Another ₹50,000 Crore This Fiscal, ₹37,400 Crore Of Limit Used

Madhya Pradesh's government has the ability to borrow an additional Rs 50,000 crore during the remaining period of the fiscal year, following its utilization of Rs 37,400 crore out of the Rs 87,000 crore borrowing limit. The state government clarified that loans are primarily allocated for development works and the establishment of capital assets, rather than regular revenue expenditure.

It utilizes loans for projects encompassing irrigation, roadways, and electricity-related capital assets. The government asserts that its financial management is robust, with 100% repayment of loans from previous years and zero defaults to date. No separate loans are allocated for salaries or social welfare schemes like Ladli Behana.

The state government also stated that no unauthorized tax hikes are implemented to raise resources for development projects. This fiscal year, the government plans to invest over Rs 1 lakh crore using its own resources and loans acquired from corporations and the Reserve Bank of India (RBI) for road, dam, electricity, and canal construction.

The state's ability to allocate such substantial funds for development initiatives is attributed to its growing Gross State Domestic Product (GSDP), which annually augments its borrowing capacity. The debt-to-GSDP ratio is at 32.53%, falling within the prevailing parameters, while the ratio of interest repayment to revenue receipts is comfortably between 10-11%.