Assam’s Borrowings Much Lower Than Other States, With Strong Repayment Ability : Claims CM Sarma

Posted in Assam, Featured, Northeast


  • NET Web Desk

Marking a comparison of borrowings among Assam and other states of India, the Assam Chief Minister Himanta Biswa Sarma on Wednesday claimed that state’s ability to repay loans were strong, and infact the borrowings are much lesser if other states are taken into context.

While speaking at the state Assembly, the CM asserted that state government would borrow Rs 14,000 Crores, during the current financial year.

Meanwhile, for the next financial year, it will borrow Rs 22,000 Crores, added the CM.

Taking to Twitter, the CM confirmed about the same, “Assam borrowings are much lower relatively in comparison to other states. Our debt ‘ GDP ratio is very good and borrowings are within the limit of Fiscal Responsibility and Budget Management (FRBM). Our capacity to return loans is robust.”

Ruling-out all allegations forwarded by opposition parties that state government has taken loans more than it’s capacity, the CM stated that northeastern state of Assam is capable of repaying all loans, as it witnessed considerable growth in Gross Domestic Product (GDP) in the last 3 years.

Through his speech, Sarma further highlighted that Assembly have itself allowed the state government to borrow loans, thereby amounting to 3.5 per cent of Assam’s GDP.

Furthermore, the Assam Finance Minister Ajanta Neog stated on Tuesday that the state’s cash inflow from the central government has increased after the state’s special category status was revoked.

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