Meghalaya CM says Govt is not taking loans to finance development in the state

Syllad | The Rising MeghalayaMarch 6, 2024

Chief Minister Conrad K Sangma on Wednesday said that the government is not taking loans to finance development in the state.

Speaking to reporters, Sangma said, “We are not financing our development by taking loans.”

He also disagrees with the opposition for alleging that the government is taking loans for development.

“I don’t agree to it (allegation) at all. I have explained this in my budget speech, so I feel that they (opposition) should have sat and listened to my reply. When they raise the issue and they don’t listen to my reply and then again now after I have replied they again raise this issue so I don’t know where to answer this question,” he said.

He said, “Our share of central taxes has doubled from Rs 4000 crore to Rs 9000 crore in the last five years. Our own taxes have gone up from Rs 1700 crore in 2018 to almost Rs 4700 crore almost tripled in the last 5 years. Our share of centrally sponsored schemes, the money that we get has almost tripled if we take average of all the schemes put together. Our EAPs overall the expenditure hs gone up five times compared to what it was in the past and externally aided projects though it is world bank it is 72% subsidized by Government of Inda. So we only pay 28% and that is also not loan. We have to pay upfront of 28 % and GOI subsidizes and pay 72%.”

“We have been able to make use of the special assistance on capital investment, which government is giving, which is 50 year long loan which is interest free and for that in the consolidated fund, we are putting money to pay back so that will not be a burden on us and we have been able to take more than four times of what the amount was allotted to us. I have been explaining this time and again in the Assembly how we have funded this,” he added.

Stating that loan component is always there, the chief minister however said, “It is not that loan component is not there but loan component is only to the tune of what the RBI and the government of India allows us. They will never allow us to take more loans than what we should take and there are caps on it and we have been maintaining those caps and therefore, it is not an issue at all. We are taking the amount as I said as what has been prescribed and allowed by the government.”

The CM said had the opposition MLAs stayed back and listened to his reply on the last day of the budget session, they would not have been asking this question again and again.