BHUBANESWAR: The debt burden on Odisha will climb up to Rs 1.25 lakh crore by the end of 2021-22 financial year. The State will have to borrow Rs 18,465 crore during the 2021-22 to finance different programmes and other day to day activities.
According to the Status Paper on Public Debt in Odisha released by the government on Monday, the gross debt is expected to increase from 20.91 per cent (pc) of the GSDP in 2020-21 to approximately 22.46 pc of the GSDP in 2023-24 financial year.
The increase in the debt burden will be driven by fiscal deficit arising on account of capital outlay spending in various programmes.The government, however, maintained that though the debt burden is growing, it will not breach the sustainability limits.
The debt burden by the end of 2020-21 is expected to reach Rs 1,06,540 crore. The status paper maintained that the debt burden will be Rs 1,44,828 crore and Rs 1,67,150 crore by the end of 2022-23 and 2023-24 financial year respectively. The interest payment will fall to 1.27 pc of the GSDP in 2023-24 from 1.41 pc in 2019. This has been achieved largely by borrowing at a lower cost from the market and retiring high cost old loans.
The State government has recently decided to avail loans from Odisha Mineral Bearing Area Development Corporation fund and compensatory afforestation fund through amendment to the accounting procedures at interest rates 1.5 to 2 pc lower than the open market borrowing. The government can borrow upto 60 pc of the surplus fund available in these dedicated schemes as per the new accounting procedure.
Credit woes
Rs 18,465 crore to be borrowed in 2021-22
Rs 1,44,828 crore expected burden in 2022-23
Rs 1,67,150 crore in 2023-24