By Our Reporter
SHILLONG, Dec 5: Congress chief Vincent H Pala fired back at Chief Minister Conrad K. Sangma, warning that Meghalaya is heading toward a “debt trap” and backing his accusations with official CAG reports and state budget data, following the CM’s defense of his government’s borrowing.
Pala said his team had done meticulous “homework” to expose what he described as the administration’s reckless financial practices. He pointed to a staggering 60% increase in state debt in recent years, now totaling Rs 25,000 crore — an “unbearable” Rs 76,000 per capita burden.
“The debt trap is near!” Pala exclaimed, highlighting that Meghalaya’s internal revenue of Rs 4,225 crore is almost entirely consumed by annual debt servicing of Rs 3,500 crore, including Rs 1,000 crore in interest and Rs 2,500 crore in principal.
Development, he warned, is paying the price. After committed expenditures, including 7.9% of GSDP on government salaries, only 2.6% of internal revenue remains for vital infrastructure, education, healthcare, and job creation.
Pala further accused the government of mismanagement and corruption, alleging massive revenue leakage and loans failing to benefit the public. He pointed to roads that need rebuilding “twice a year” instead of lasting five, and contractors struggling to get paid.
He also charged political favoritism, claiming borrowed funds are being channeled to a select group of 12 MLAs and their associates, leaving 48 other constituencies and the broader public neglected.
The confrontation comes after Chief Minister Conrad K Sangma’s statement on Tuesday, where he explained that 72% of the state’s loans would be repaid by the Centre, with Meghalaya covering the remaining 28% upfront.
Addressing the claim that Meghalaya’s borrowing amounts to 40% of GSDP, Sangma said the Government of India, Ministry of Finance, and Reserve Bank of India have mechanisms “to ensure that no state takes loans beyond a certain level.”
Reacting to the Congress’s statement that Meghalaya’s loans amount to 40 per cent of GSDP, Sangma had said that the Government of India, Ministry of Finance and Reserve Bank of India have their own mechanisms to ensure that no state takes loan beyond a certain level.
