The Madhya Pradesh government plans to take a new loan of Rs 25,000 crore before the current financial year ends on March 31, 2025. This includes an immediate loan of Rs 5,000 crore, with the remaining amount to be borrowed in phases over the next two months.
Ahead of the state budget, Finance Minister Jagdish Devda is engaging with various stakeholders to gather inputs for the financial roadmap. However, the growing fiscal deficit has necessitated fresh borrowing.
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"We are taking loans as per the rules, and they are being repaid with interest. The upcoming budget will address all sections' needs. There is no cause for concern," said Finance Minister Jagdish Devda, assuring citizens of prudent financial management.
Debt Soars to Rs 4.21 Lakh Crore
Madhya Pradesh's debt has seen a rapid rise over the past five years. In March 2020, the state owed Rs 2.01 lakh crore. By March 2024, this figure had ballooned to over Rs 3.75 lakh crore. It is estimated to exceed Rs 4.21 lakh crore by the end of this financial year, effectively doubling within five years.
Madhya Pradesh accounts for over 5% of the nation's total debt, ranking ninth among states in terms of borrowing.
The opposition Congress has raised serious questions about the state's borrowing practices.
"Why take loans when state properties are being sold? The government is spending recklessly-be it expensive cabinet meetings, costly bridges, or luxurious purchases. How many generations will repay this debt? The government must issue a white paper to provide transparency," said Congress spokesperson Bhupendra Gupta.
Mr Gupta also highlighted expenditure on non-essential items, such as a Rs 230 crore jet plane proposal, Rs 18 crore for repainting ministers' bungalows, and Rs 5 crore for SUVs for ministers.
A significant portion of the state's expenditure is directed toward welfare schemes, particularly the Ladli Behna initiative, which costs approximately Rs 1,600 crore per month. The government has also invested heavily in developmental projects across the state.
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