SHILLONG, Sep 11: The Hynniewtrep Youth Council (HYC) has sent an open letter to Chief Minister Conrad K Sangma seeking a clarification from the government on the recent warning by the Comptroller and Auditor General of India (CAG) that Meghalaya might fall into a potential debt trap.
In the open letter, the HYC said it is in a dilemma over whether it should believe the words of Sangma who said Meghalaya will be able to achieve the ambitious target of US $10 billion economy by 2028 or the CAG’s observation that the state’s financial position will be worse going forward as Meghalaya is in a “debt trap” to the tune of Rs 15,000 crore and counting.
The HYC said the CM tried to give the impression that the state government took interest-free loans for 50 years although not all loans are grants.
It pointed out that the CAG’s report stated the loans taken by Meghalaya includes 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 Government of India. “Is it not a fact that a loan once taken has to be repaid, with or without interest? And in the event, such loans are not able to be repaid, within the stipulated time, then what will be the consequences?” the HYC asked.
Stating that loans cannot be taken without collateral, the organisation asked about the collateral given against these loans. “And as citizens of the state, we are entitled to also know as to how the loans have accumulated to such a colossal amount,” the HYC said.
Slamming the government for utilising public money for programmes like festivals which allegedly did not generate wealth for the state, the HYC accused the government of utilising public money in “unproductive” activities like appointment of countless political appointees, consultants, etc.
“Moreover, we have witnessed the act of inflation of cost of various projects like the Saubhagya scheme, construction of Meghalaya Legislative Assembly building and others. If the amount taken as loans is being utilised by the state government on these unfruitful programmes and activities, for perks and salaries to political appointees and inflation on cost of projects, then how does the government justify the same?” the HYC asked.
On the CAG’s findings that the state government has failed to recover public money in the form of taxes, cess, royalty, fees, etc from various persons and entities who are supposed to pay such taxes, the HYC lamented that the government has waived taxes, like VAT, from petrol pump owners, electricity bills of factories etc.
The organisation expressed concern over the public undertakings and corporations which have become the ‘white elephants’ for the state and sought immediate corrective actions by the state government.
“Our concern is, what if these ‘white elephant entities’ are run by money taken as loans? Whether the state government will be able to repay the loans when these entities are running on losses?” the HYC asked.
Stating that there is a growing demand in Garo Hills for a separate Garoland state, the HYC asked if it will not be the liability of the parent state to repay the loans in the event of Meghalaya’s bifurcation into two states in the near future.
“Is it not a fact that the citizens of Khasi-Jaintia Hills, by whatever name called, being a parent state at that point in time, will be liable for the repayment of whatever amount of loans taken by the state of Meghalaya?” the HYC asked.
