Assam to avail loans amounting to Rs 14,000 crore from centre: CM Himanta

Sarma was replying to the cut motion of the finance department on the third day of the Assam Legislative Assembly winter session, wherein he stated that the Assembly had permitted the state government to seek loan totalling 3.5 per cent of the state's Gross Domestic Product (GDP).

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GUWAHATI:

Assam Chief Minister Himanta Biswa Sarma, on December 22, said that the state will be availing loans amounting to Rs 14,000 crore during the current fiscal for various developmental projects.

Sarma was replying to the cut motion of the finance department on the third day of the Assam Legislative Assembly winter session, wherein he stated that the Assembly had permitted the state government to seek loan totalling 3.5 per cent of the state's Gross Domestic Product (GDP). 

“As per the clearances, we will take another Rs 14 thousand crore loan this year and Rs 22 thousand crore the next year," Sarma said on the floor.

“The Assembly had unanimously passed the Fiscal Responsibility and Budget Management (FRBM) Act in April, 2021, authorizing the state government to borrow 3.5 per cent loan of GDP,” he said.

Claiming that the state’s GDP has grown in the last three years and has shown an upward growth trend, Sarma asserted, “This year we may cross 12.5 per cent even despite the pandemic-ravaged economy.”

Stating that Assam is borrowing Rs 2,000 crore less, he revealed that next year the government will take loans amounting to Rs 18,000, and Rs 22,000 crore in 2023.

Citing examples from other states, Sarma revealed, “Punjab is taking 52.5 per cent of the GDP, West Bengal 35 per cent, and Rajasthan is borrowing 33 per cent loan of the GDP. Assam is taking 22 per cent of the GDP, Which is the lowest in the country.”

Replying to the house, the chief minister also claimed that the Tax GDP ratio is stable in the state as of now.

“We seek a loan for capital expenditure. But some people are hatching a deliberate conspiracy to derail Assam’s development. They are planning to push back the state from development,” Sarma said.

The chief minister also informed that the state government is borrowing a brief loan of Rs 5000 crore for the construction of 1900 bridges in various rivers of the state. 

The state will borrow another loan of Rs 3000 crore for super speciality blocks in three medical colleges of the state.

Assam will also borrow another loan of Rs 2.5 thousand crores for the districts where there is no medical college, Sarma informed the house, while underlining that the funds will be utilised for constructing district hospitals.

Sarma, also highlighted other loans in the pipeline from Asian Development Bank (ADB) and the centre that will expedite the state’s growth trajectory.

Speaking to the house later, finance minister Ajanta Neog, claimed that the state’s fiscal condition is stable and the growth has gone up to 10 per cent in November despite a pandemic situation in the country.

Neog claimed that the state’s income has doubled from Rs 4,000 crore in 2014-15 to Rs 8000 crore in 2020-21 due to untiring efforts of the state government.

“Our own tax resource increased to Rs 16000 crore during this period. There is a steep increase of excise revenue from Rs 2,000 crore in 2015-16 to Rs 2,000 crore in 2020-21. There is also an increase in state's revenue during this period,” she said.

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