In 3 yrs, HP’s debt burden has climbed to `38,563cr

SHIMLA: Over the last three years, the state’s total debt burden has accumulated to about `38,563 crore, leading the Comptroller and Auditor General of India (CAG) to observe that the state is moving towards a debt trap.

In the last three years, the state has availed a net loan of `7,500 crore and repaid a loan of `5,500 crore. Still the accumulated debt liability has been pegged at `38,563.36 crore. CAG had already observed in March that the state was moving towards debt trap and by the financial year 2018-19 it will have to use its total borrowing for repayment.

From January 1, 2013 to March 2013, the state availed loan of `1,053 crore and also repaid `712 crore. In the fiscal year 2013-14, a loan of `3,422 crore was availed while `1,531 crore was repaid. During the same period, the state availed a market loan of `2,367 crore at the rate of 7.62% to 9.75%.

In the financial year 2014-15, the state availed a market loan of `2,345 crore at 8.08% to 9.63% interest rate and in total availed loan of `4, 016 crore.

The state has also repaid `1,477 crore during same year. In 2015-16, market loan of `2,450 crore was availed at the rate of 7.95% to 8.25% and total loan `4,353 crore was availed and `1,632 crore repaid.

Besides RBI’s market loan gateway, the state has availed loan from National agricultural bank for rural development (NABARD), National cooperative development corporation (NCDC), National small saving fund and from centre government. The state’s GSDP is over `1 lakh crore, hence debt to GSDP ratio stands at about 36%. For the current fiscal year, the state has projected the repayment of `3,400 crore.

“As far as the debt trap situation is concerned, right now state is walking a tight rope and if situation is not tackled, the CAG observation will be proven true,” a government functionary told HT, requesting anonymity.

As far as the market loan is concerned, state can borrow 3% of its GSDP.