By Our Reporter
SHILLONG, Dec 1: The Congress has warned that Meghalaya is heading towards a debt trap, alleging that the state government has accumulated massive loans amounting to nearly 40 per cent of the State’s GSDP.
Highlighting the concern, Meghalaya Congress president Vincent Pala said the national average of debt-to-GSDP stands at around 28 per cent, whereas Meghalaya is “crossing all limits” in its borrowing.
“How can we survive if we continue taking loans like this?” Pala said, noting that the state’s internal revenue collection is around Rs 4,000 crore and tax contribution stands at around Rs 9,000 crore.
“For the rest, we are dependent on the mercy of the central government,” he added, pointing out that the State Government is currently borrowing from external agencies at a rate of Rs 85–Rs 86 per dollar, which could rise to Rs 100 per dollar in the future.
Stating that Meghalaya cannot afford such extensive borrowing when there are “massive leakages” in revenue and royalty collection, Pala said the per capita debt in the state has now reached a staggering Rs 76,000 per citizen.
He alleged that despite taking huge loans, the benefits are not reaching the public, as much of the borrowing is directed towards roads and infrastructure projects, where “many contractors are Ministers or people close to the Government.”
“There is rising unemployment and people remain poor because this money is not reaching them,” he said.
Referring to the Chief Minister’s recent statements proudly highlighting large loans received, Pala reminded him that reports from NITI Aayog and audit authorities have already warned that Meghalaya is heading towards a debt trap.
