PUDUCHERRY: The VCK on Monday expressed apprehensions about the Puducherry plunging into bankruptcy and a debt trap with the borrowings exceeding the budget outlay.
VCK State secretary Deva Pozhilan said that the AINRC-BJP alliance -- which came to power with the election promise to waive off Puducherry's debt -- announced an outstanding debt of Rs 9,859 crore as on March 31, 2022. "If the market borrowings targeted at Rs 1,889.61 crore are available in the current year, then the outstanding debt amount would increase to Rs 11,748 crore," he added.
He said that the BJP claimed a rosy financial picture and formed a government in Puducherry. "The Puducherry government has to depend on the Centre's financial contribution as the UT's source of revenue is very small. In such a situation, the BJP government decided to stop the GST compensation to the State governments from 2022, Puducherry has been abandoned by the Centre."
A major portion of the rupee budget, i.e. 67%, will be spent on salaries, pensions, loans received by the State government and interest amount of 5,745 crores; so this is a disappointing budget, he added.