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November 22, 2018

Economy of Bangla has improved despite huge debt burden

Economy of Bangla has improved despite huge debt burden

Placing hard facts before the Assembly, the State Finance and Industry Minister, Dr Amit Mitra highlighted the improvement in the last seven years in Bangla with regards to the economic and financial parameters. He was answering a question put to the government by an opposition MLA.

With Chief Minister Mamata Banerjee as the driving force, the Trinamool Congress Government has increased the revenue through fiscal discipline and e-governance.

And this increase has occurred, as the minister rightly pointed out, despite the huge burden left behind by the Left Front regime because of the huge loan taken. For the repayment of the Rs 1,91,835 crore loan, the State had to borrow Rs 1,53,741 crore, taking the total loan to Rs 3,45, 577 crore. The State Government has a debt repayment burden of Rs 47,000 crore in the current fiscal.

The debt to GSDP (gross state domestic product) ratio has gone down by almost 5 per cent in seven years from 2010-11 to 2017-18, from 40.65 per cent to 35.63 per cent. The revenue deficit to GSDP ratio has also dropped during the same period, from 3.75 per cent to 0.96 per cent while the fiscal deficit has halved, from 4.24 per cent to 2.83 per cent.

Putting out other crucial statistics, Dr Mitra asserted that the planned expenditure has grown over five-fold, from Rs 11,837 crore in 2011-12 to 56,604 crore in 2017-18, and the capital expenditure has grown over eight-fold, from Rs 2,225 crore to 19,368 crore.

Source: Millennium Post