Meghalaya Opposition raises concerns over state's mounting debt
Shillong: The Opposition Voice of the People Party (VPP) expressed concerns about the Meghalaya government's fiscal management, particularly its reliance on loans from the open market.
During the Assembly's general discussion on the budget, VPP MLA Ardent Miller Basaiawmoit highlighted the state's "dodgy" financial situation due to mounting debt, as reflected in the budget document.
He pointed out that loans taken from the open market and floating loans had doubled in 2024 compared to the previous year.
Basaiawmoit questioned the government's ability to repay the loans, citing a significant discrepancy between the amount borrowed (Rs 15,524 crore) and the amount repaid (Rs 2,733 crore).
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He acknowledged the state's limited revenue but expressed concern about the potential for a "debt trap," echoing observations made by the Accountant General's report in 2011 and 2022, which noted a 62% increase in Meghalaya's overall debt.
Basaiawmoit further emphasized the importance of prioritizing investments and identifying "less important" projects or programs that could be deferred.
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He urged the government to ensure that spending is "fruitful or productive" and criticized the justification for a large number of political appointments, arguing that even "Rs 1 lakh is a huge amount" for a revenue-starved state if it does not yield positive results.
The VPP legislator further questioned the effectiveness of three economic bodies established to guide the government's economic policies, highlighting their lack of meetings in the past five years despite incurring significant expenditures.
He proposed austerity measures such as curbing unnecessary vehicle purchases, avoiding foreign trips, and addressing revenue leakages, including alleged extortion along national highways.