Breaking News :

MP Govt can borrow private loans to fight Corona virus

01-04-2020

Bhopal. In view of the current financial situation of the state and the steps being taken to prevent the infection of corona virus, the central government has given permission to take additional loans from the market to raise financial resources. Under this, the state government can take a loan of four thousand 443 crore rupees from the market. On the other hand, the government is again going to take a loan of Rs 750 crore from the market on Monday.

Finance Department officials said that under the Fiscal Responsibility and Budget Management Act (FRBM), the government can borrow up to three and a half percent of the state's total GDP. This amount is around 22-23 thousand crore rupees. The economic slowdown has affected GDP.

The central government has also not received the required financial support due to the reduction in central taxes. In view of this, the Central Government has given exemption in FRBM to many states. Under this provision, the state has been allowed to take an additional loan of four thousand 443 crore. It is noteworthy that the central government adjusted the same amount in the state government's general budget.

It was reported that in the year 2018, the central government had given advance to the state in several items, which has been adjusted. Financial management of the government is likely to be back on track with the additional loan waiver. On the other hand, the department has called tenders through the Reserve Bank of India till Monday to take a loan of Rs 750 crore from the market for four years. On Tuesday, the institution, which will be offered a loan at the lowest interest rate, will take the loan while approving it.

It is being told that this loan amount will be used for the development of development projects along with promoting financial activities. The government has taken a loan of about Rs 23 thousand 600 crore since January 2019. Combining this, more than two lakh crore rupees have been incurred on the state. Sources say that when the Accountant General's reports are laid on the table in the monsoon session of the Legislative Assembly, the debt situation will be completely clear as the repayment of the loan also goes hand in hand.

 

Opinions expressed in the comments are not reflective of Central Chronicle. Comments are moderated automatically.

Related Posts