SHAILLONG: The state government’s financial management was questioned by the People Party’s Opposition Voice on Friday, particularly in relation to loans it had obtained from the open market.
Participating in the Assembly’s general budget debate, Ardent Miller Basaiawmoit, the MLA for the VPP for Nongkrem, stated that the budget paper showed the state’s precarious financial situation due to debt.
The state government’s borrowing from both floating and open market loans was shown, he said, on page 36 of the budget paper. In 2024, he said, the loans have increased.
The government’s capacity to pay back the debts was questioned by Basaiawmoit. “The repayment was Rs 2,733 crore, but the government took in Rs 15,524 crore in loans,” he stated.
“I am aware of the extremely low level of state income. For the successful execution of its numerous plans, programs, and initiatives, the government is primarily dependent on loans,” he declared.
The government is known to be borrowing money in order to pay back its debts.We’ve gotten ourselves into a debt trap,” Basaiawmoit said.
On page 52 of its report, the AG noted that Meghalaya’s total debt had climbed by 62%.
“I recognize that taking out loans is a vital way for the state to boost its revenue, therefore I’m not arguing that the state government shouldn’t do so. He stated, “I think we should decide which missions, programs, or initiatives are less critical to fund in right now.
He asserted that the government must set priorities for the sake of allocating funds.
“We must determine if the spending is beneficial or productive. It is unacceptable for him (CM) to try to defend so many political appointees, stated Basaiawmoit.
According to him, even one lakh rupees is a substantial sum in a state like Meghalaya that is severely short on revenue if it has no beneficial outcome.
The VPP lawmaker said that the interests of the people had to come first.
He cited the existence of three economic bodies, or councils: the Meghalaya Commission on Resource Mobilization, the Meghalaya Economic Development Council, and the Meghalaya Resource and Employment Generation Council. These councils are meant to assist and advise the government in formulating its economic policies.
It has come to our attention that these councils have not met for the past five years. Yet the cost of them is in the crores of rupees. Public funds are being wasted, according to Basaiawmoit.
He recommended that the state government adopt certain austerity measures, such as ceasing needless car purchases and avoiding needless overseas travel.Additionally, he recommended that action be taken by the government to stop income leaks.
The extortion along the national roads through district councils, Himas, and even state government toll gates was also questioned by the Nongkrem MLA.
Basaiawmoit declared that the government has to put an end to any kind of extortion on the roadways and that it is their responsibility to work diligently and assiduously to plug income leaks.
He asserted, “There are reports of anonymous individuals obtaining up to Rs 30,000 from trucks on the highways.”
Saleng Sangma, a congressman, also issued a warning, stating that the state government’s goal of turning Meghalaya into a $10 billion economy is a debt trap that the people of the state are being led into.
He asserted, “There are reports of anonymous individuals obtaining up to Rs 30,000 from trucks on the highways.”
Saleng Sangma, a congressman, also issued a warning, stating that the state government’s goal of turning Meghalaya into a $10 billion economy is a debt trap that the people of the state are being led into.
“It is evident in the budget that taking on excessive debt will put us in a debt trap and potentially destroy the dream of a $10 billion economy,” he stated, stressing that ultimately, people will be responsible for paying the majority of the debt in the form of taxes, which might potentially result in price increases.
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