Claiming that Odisha's economic condition was stable than many other states, Finance minister Pradip Kumar Amat today said the state government incurred loans only for essential developmental activities.
"The state government has been successful in containing the loan burden by careful handling of debt management," Amat said while replying to a debate on Odisha's loan burden in the state Assembly.
While opposition Congress and BJP members accused the BJD government of pushing the state into debt trap, Amat rejected the allegation and claimed that Odisha had not lifted loans from open market since 2006-07.
Stating that Odisha used to take loan from National Small Saving Fund, he said the state government on priority basis repays loans earlier taken at higher interest rate.
"The state government has availed interest waiver of Rs 1,909.50 crore at the rate of Rs 381.90 crore per year from 2005-06 to 2009-10 for proper implementation of provisions under Fiscal Responsibility and Budget Management Aule, 2005 as per recommendations of 12th finance commission," he said.
State government has also availed interest waiver of Rs 63.01 crore in 2011-12 and Rs 22 crore in 2013-14 fiscal as per the recommendations of the 13th Finance Commission based on the amendments in the Fiscal Responsibility and Budget Management Rule, 2005, Amat said.
"We have been successful in reducing dependence on loans by creating revenue surplus condition," he said.
While Odisha's debt burden was Rs 43,549 crore in 2013-14 budget estimate, the amount in neighbouring Andhra Pradesh and West Bengal was Rs 1,78,840 crore and Rs 2.32,610 crore, respectively, Amat said.
Similarly, he said that the ratio between the state's loan burden and gross state domestic product (GSDP) had been 14.88 per cent against 17.18 per cent of Jharkhand and 20.64 per cent of Andhra Pradesh and 31.33 per cent in West Bengal.
Therefore, Amat urged Odisha MLAs not to worry over economic condition of the state, while claiming that the ratio of debt was well within the state's limit. RBI's recent report also categorically says that Odisha's debt burden was well within manageable level, Amat said.
The opposition members, however, alleged that the BJD government had put the state under a debt trap by incurring loan amounting to Rs 50,000 crore from Rs 18,000 crore in 2000 when it came to power. "The state can easily repay all its loans if it manages to collect penalty on the mine owners," BJP legislature party leader Basant Panda said.
