Cong raises apprehensions over growing debt as MP Govt seeks another loan from Centre

Bhopal, June 5 As the Chief Minister Mohan Yadav-led Madhya Pradesh government is all set to borrow Rs. 4,500 crore from the Centre, the Opposition Congress raised apprehensions that with this new loan, the state's total debt of Rs 4.30 lakh crore will cross its annual budget of Rs. 4,21,032 crore.

The Congress accused the BJP-led government of pushing Madhya Pradesh into a quagmire of debt and not taking any steps to bring the borrowings down and instead indulging in luxuries like buying new planes, cars and renovating bungalows of ministers.

The Congress slammed the Madhya Pradesh government of not taking any initiatives to reduce wasteful expenditure on luxuries of its own in the midst of a financial crunch.

The criticism came after the Chief Minister Mohan Yadav government on Tuesday initiated formalities for a fresh loan of Rs 4,500 crore from the Centre, its second borrowing this financial year.

With this fresh loan, the state's total debt went past the Rs 4.30 lakh crore mark, which is well beyond its annual budget of Rs 4,21,032 crore presented for the current financial year.

The total debt of Madhya Pradesh was Rs 4,21,740 crore as on March 31.

"Despite taking huge amounts of loans, the BJP government has not even given the Minimum Support Price on crops to the farmers. If this loan is being said to be used for the welfare of farmers and the youth of the state, then where is this money being spent," veteran Congress leader and former Madhya Pradesh Chief Minister Kamal Nath said in a statement on Thursday.

“While the Madhya Pradesh government has often maintained that the loans taken are being utilised for financing productive development programmes and projects in the state, the borrowings mainly bear the cost of development and welfare schemes.

“However, despite the rising loan burden, the Madhya Pradesh government has not hesitated in buying a state plane and new cars for ministers and renovating ministers' bungalows,” he said.

“On July 10 last year, the Madhya Pradesh government cleared a proposal to buy a jet plane worth over Rs 230 crore.

"This loan money is being spent on the luxuries of the BJP government and its leaders. While the public is being crushed under the burden of inflation day by day," Kamal Nath further added.

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