Comparing the borrowings of Assam with that of other states, Chief Minister Himanta Biswa Sarma on Wednesday said that the state’s capacity to return loans is robust.
“Assam borrowings are much lower relatively in comparison to other states. Our debt – GDP ratio is very good and borrowings are within the limit of Fiscal Responsibility and Budget Management (FRBM). Our capacity to return loans is robust,” tweeted Sarma.
Speaking in the state Assembly on Wednesday, the chief minister said that the Assam government would borrow Rs 14,000 crore in the current financial year and Rs 22,000 crore in the next financial year.
Sarma emphasised that loans are a must for the development of the state.
Negating the allegations levelled by the Opposition parties that the state government had taken loans beyond its capacity, the chief minister said the state could have more borrowings and is capable of repaying them timely as Assam witnessed considerable growth in Gross Domestic Product (GDP) over the past three years.
Sarma pointed out that the Assembly itself had allowed the state government to borrow loans amounting to 3.5 per cent of the state’s GDP.
Sarma noted that Assam’s borrowing percentage on GDP was much lower than states like Punjab (52.5 per cent loan on GDP), West Bengal (35 per cent) and Rajasthan (33 per cent). (ANI)