State makes provision of `2100 cr to pay interest on bank loans

The debt-ridden Maharashtra state has made a provision of Rs 2151 crore to repay interest on loan taken from banks, through supplementary demands worth Rs 3,871 crore. The demands were tabled in both Assembly and Council House on Monday, very first day of the budget session.

Out of total demands, Rs 14 crore has been shown to lay ex-gratia to families of farmers who had committed suicide. The state has proposed the expenditure of Rs 16 crore for the purpose however Rs 2 crore will be provided from within the sanctioned grant of the current financial year.

Additional provision to cover the expenditure of payment of interest on market borrowing and also repayment of ways and means advances from the Reserve Bank of India (RBI) Rs 2181.52 crore. The discussion on the supplementary demands will take place in the first week of March in lower house.

The state has cleared the proposal of Rs 26, 402 crores supplementary demands in the last winter session at Nagpur, while supplementary demands over Rs 33,000 crores iin the monsoon session was sanctioned.

The state has made an additional provision of Rs 354.91 crore to cover the expenditure on freeship to the students whose parent’s income does not exceed Rs six lakh per annum. The state government had recently taken a decision to change annual income limit to six lakh from previous Rs 4 lakh per annum.