SURAJ NANDREKAR
suraj@herald-goa.com
PANJIM: For the first time a State government document has admitted that public debt has been rising continuously.
The Economic Survey 2018, which was tabled during the just-concluded Budget Assembly session said that the State’s public debt as on March 31, 2018 is estimated at Rs 13,203.42 crore.
“It is observed that public debt of State is continuously rising. The public debt, which was Rs 9936.02 cr in 2015-16, increased to Rs 11,344.19 cr in 2016-17. It further increased to Rs 12,388.29 cr as per revised estimates in 2017 and is likely to increase to Rs 13203.42 cr as per 2018 (estimates),” the report says.
However, the report adds, though the debt is increasing the GSDP/debt ratio is decreasing. “Although, the public debt is increasing continuously, yet the debt/GSDP Ratio shows a decline from 2016 onwards. The debt/GSDP ratio which was 25.21 per cent in the year 2016 is expected to be 23.88 per cent in 2018,” the survey states.
As per the 2018 estimates, central loans and market loans form a major part of the public debt. The report shows that individually Central loan and NSSF shows a decline and market loans show an increase in the total public debt from 2012 onwards.
The Central loan and the NSSF which had a 53.53 per cent share in total public debt in 2012 forms 32.02 per cent in 2018 (estimates). However, market loans which were 40.18 per cent share in total public debt in 2012 forms 62.86 percent in 2018 (estimates). Loans from NABARD account for only five per cent of total public debt during 2018 (estimates).
Speaking to Herald, a senior bureaucrat in the Finance Department shrugged off any fears stating the debts are in control. “The State is allowed to borrow Rs 1800 cr in a financial year as against our GSDP and for the last two years we are within the limits,” he said.
Besides, he said, the State is regularly paying all installments. “When we are regularly paying salaries and installments on time there shouldn’t be any problems,” he added.
Asked for the reasons for taking more loans, he said, “There are various factors, implementation of 7th Pay Commission, the debt servicing (like installments) and other works which I cannot tell you off-hand, besides the GST collection has to also improve.”
The officer also refused to admit that the loans are used for development projects. “Most of development projects are taken up with Central assistance to the tune of Rs 15,000 cr and the State is spending nothing on them,” he said.
