‘West Bengal has done remarkably well in terms of debt mngnt’
Debt to GDP ratio brought down to 33% from 40%
Rubbishing “incorrect figures” that are allegedly being attributed to the debt that the state is presently reeling under, the West Bengal government clarified that currently, the debt is Rs 5.86 lakh crore while highlighting that the state has been able to bring down the Debt to GDP ratio to 33%.
Chief Minister Mamata Banerjee said she often comes across incorrect news relating to the debt of the state. She said it is to be remembered that unless a loan is paid off, the amount keeps on increasing. “The issue is that the newer states like Andhra Pradesh and Telangana don’t have the problem of repaying loans. Bengal, on the other hand, has a legacy of the erstwhile CPI(M) government, which had taken various loans. Today, however, we have reduced these debts by leaps and bounds.”
She asked Chief Secretary H K Dwivedi to clarify the matter to rule away any confusion. Dwivedi said: “The debt in 2011 was 2 lakh crore. Now, in 2023, it is Rs 5.86 lakh crore,” he clarified. He highlighted that the state government has been able to bring down the Debt to GDP ratio drastically.
“In 2011, it was 40 % which has been brought down to 33%. The state had initially brought it down to 32% but due to two years of pandemic, it increased slightly. In terms of debt management, Bengal has done remarkably well,” he pointed out.
Further, comparing the state’s debt with that of the Centre’s, Dwivedi highlighted: “The Union government’s debt was Rs 62.42 lakh crore in 2014-15. Today, it stands at Rs 156.2 lakh crore.” Mamata added: “The Centre keeps blaming our state, but has never spoken about its own debt ratio.”
In the context of the state’s debt, the Chief Secretary pointed out that the state government has also increased its budget compared to what it was in 2011. “In 2010-11, it was Rs 84,000 crore. Now, the budget allocation is Rs 3,40,000 crore. This is more than four times the allocation in 2010-11.”
He highlighted that the state has also increased its Own Tax Revenue. “It was Rs 21,000 crore in 2010-11. Now (2023-24), it is Rs 90,000 crore. Further, the capital expenditure for creating infrastructure has been increased to Rs 35,000 crore compared to Rs 22,000 crore (2010-11). No other state was able to increase their capital outlay to such an extent.”
