Report Wire - Cash-strapped West Bengal passes invoice in House to hike borrowing capability

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Cash-strapped West Bengal passes invoice in House to hike borrowing capability

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Express News Service

KOLKATA:  Burdened with Rs 70,000 crore debt, the West Bengal authorities on Wednesday handed a invoice within the Assembly to boost its borrowing capability. The transfer to amend the West Bengal Fiscal Responsibility and Budget Management Act, 2010, was initiated within the wake of the Centre pausing the discharge of funds beneath the MGNREGA scheme. Mamata Banerjee-led authorities is now determined to maintain the stream of funds within the beneficiaries’ accounts unaffected earlier than the panchayat elections subsequent 12 months.

Earlier, the Union finance ministry had determined to repair the web borrowing ceiling for the state at 3.5 per cent of the Gross State Domestic Product (GSDP) for 2022-23, and a further borrowing capability of 0.5 per cent of the GSDP. 

“The state is going through acute fund crunch. In recent meetings, the CM has asked bureaucrats to find out ways to generate inflow. The government has no way out other than borrowing more money to keep the welfare schemes alive,” mentioned a bureaucrat.

The Union authorities had earlier directed the state to get better the cash which was allegedly pilfered by the panchayat and zila parishad functionaries, and the state had initiated strikes to comply with the directive.
Revealing the poor image of the cash-strapped and industry-starved state, latest statistics launched by the Central Industry and Business Ministry present that from January to July, investments value Rs 1.17 lakh crore got here into India, of which West Bengal received solely Rs 1,663 crore. The state’s income largely comes from stamps and registration charges, state items and repair tax, gross sales tax on petrol and state excise.

KOLKATA:  Burdened with Rs 70,000 crore debt, the West Bengal authorities on Wednesday handed a invoice within the Assembly to boost its borrowing capability. The transfer to amend the West Bengal Fiscal Responsibility and Budget Management Act, 2010, was initiated within the wake of the Centre pausing the discharge of funds beneath the MGNREGA scheme. Mamata Banerjee-led authorities is now determined to maintain the stream of funds within the beneficiaries’ accounts unaffected earlier than the panchayat elections subsequent 12 months.

Earlier, the Union finance ministry had determined to repair the web borrowing ceiling for the state at 3.5 per cent of the Gross State Domestic Product (GSDP) for 2022-23, and a further borrowing capability of 0.5 per cent of the GSDP. 

“The state is going through acute fund crunch. In recent meetings, the CM has asked bureaucrats to find out ways to generate inflow. The government has no way out other than borrowing more money to keep the welfare schemes alive,” mentioned a bureaucrat.

The Union authorities had earlier directed the state to get better the cash which was allegedly pilfered by the panchayat and zila parishad functionaries, and the state had initiated strikes to comply with the directive.
Revealing the poor image of the cash-strapped and industry-starved state, latest statistics launched by the Central Industry and Business Ministry present that from January to July, investments value Rs 1.17 lakh crore got here into India, of which West Bengal received solely Rs 1,663 crore. The state’s income largely comes from stamps and registration charges, state items and repair tax, gross sales tax on petrol and state excise.