The leader of the opposition in West Bengal, Suvendu Adhikari, asserted today that the state administration “breached its borrowing limit” under the Fiscal Responsibility & Budget Management (FRBM) Act by requesting a loan from the Reserve Bank of India for Rs. 10,000 crores (RBI).
The Nandigram BJP MLA pleaded with the Union Finance Ministry on Twitter to encourage the state to increase internal income by changing its land policy.
Adhikari was criticized by Chandrima Bhattacharya, Minister of State for Finance, who stated the “worried” lawmaker should take action to ensure that the BJP-led central government paid the debt it owed Bengal.
Tweeted Mr. Adhikari: “The West Bengali government has asked RBI for a loan of Rs. 10,000 crores. Sadly, WB has already exceeded the amount of money it was permitted to borrow by the Fiscal Responsibility & Budget Management (FRBM) Act. The fact that Bengal is reported $6 lakh crore in debt is equally concerning.”
Instead, he continued, “@FinMinIndia should advise the State of WB to boost internal revenues by altering land policy and creating a welcoming environment for setting up industries and luring investment which would also stimulate the economy, create employment, and aid in reducing the burden of debt.”
The Leader of the Opposition should be aware that a Bill relevant to Bengal’s borrowing capacity was approved in the Assembly, Ms. Bhattacharya said angrily, adding that the state was entitled to open-market borrowing under the FRBM Act.
“I don’t recall if the leader of the opposition attended the debate in the House. He may have spoken his opinions at the time. Before tweeting, he needs to have verified the facts “Minister speaking to PTI.
She said that due to cautious fiscal management despite “many adversities,” Bengal currently ranks among the front-running states in GDP (Gross Domestic Product) growth with a public debt ratio of 34.23% of GSDP.
“There won’t be any need to make a loan request to RBI,” she added, “if he (Mr. Adhikari) takes the initiative to expedite the clearing of Bengal’s increasing dues from the center.”
The state administration intended to increase the public debt by 1,14,958 crore in the 3.21 lakh crore budget that the Minister had submitted to the Assembly on March 11.
While presenting the budget, Ms. Bhattacharya anticipated that the state’s total outstanding debt as of March 2023 would be $5,86,438.05 crore.
