By Our Reporter
SHILLONG, Aug 31: The Meghalaya government’s public debt has surged by over 20% between 2021-22 and 2022-23, according to a report by the Comptroller and Auditor General (CAG) which was presented in the Assembly on Friday.
The CAG warned that the state might fall into a potential debt trap.
Liabilities on the consolidated fund of the state include market loans, loans raised from financial institutions, and loans and advances received from the central government, the CAG report said.
During 2022-23, public debt liabilities stood at Rs 14,637.12 crore. This comprised market loans of Rs 11,285.50 crore, loans from financial institutions of Rs 1,349.04 crore and Rs 2,002.58 crore loans and advances from the central government.
The increase in public debt in 2022-23 over 2021-22 (Rs 12,165.98 crore) was 20.31%. This was primarily due to increase in loans and advances from the central government (117.40%) and market loans (13.79 per cent).
According to CAG, the liabilities on the consolidated fund increased by 20.74% in 2022-23 over 2021-22, mainly due to increase of market loans by 13.79% and loans and advances from the central government by 161.90%.
The CAG said the state’s outstanding liabilities increased from Rs 10,623.68 crore as on March 31, 2019 to Rs 18,442 crore as on March 31, 2023. Compared to the previous year, the outstanding liabilities at the end of 2022-23 increased by 19.13% (Rs 2961.23 crore).
Stating that the state has failed to achieve the total outstanding liabilities to GSDP ratio target of 28% set by the Meghalaya Fiscal Responsibility and Budget Management Act, 2006 for the period 2018-19 to 2022-23, the CAG added that Meghalaya has the fourth-highest outstanding liabilities-GSDP ratio in the country.
It stood in the third position among the 11 Northeastern and Himalayan states.
“This indicates mounting liabilities of the state. The state may take proactive measures to address this concern and avoid falling into a potential debt trap,” the CAG warned.