Dimapur, July 17 (MExN): The Congress Legislature Party (CLP) has criticized the Democratic Alliance of Nagaland government (DAN) for going on a ‘borrowing spree’ and incurring hung debts in spite of the caution of the Accountant General of Nagaland.
CLP leader Tokheho Yepthomi issued a statement today listing details about the institutions the government has borrowed from, the amount borrowed, the interests and the interest per annum during 2009-2010 and 2010-2011. . The Planning Commission of India (PCI) grants permission to the state government to take loans from financial institutions as part of the annual plan. The permitted limit set by the PCI to borrow was Rs. 250 crore during 2009-10 and Rs. 270 crore during 2010-11.
Yepthomi said – “Sometime back, the Accountant General of Nagaland had cautioned the government to restrict market borrowing and issued its advisory to the state government to invest the loan money in sectors where the government can generate revenue for the state. However, in defiance of this advisory, the state government has been spending the loan money in non-revenue generating sectors.” “Despite these limits set by the PCI and the AG’s caution and advisory, the DAN Govt. had gone on borrowing spree, thereby landing the State into huge debt trap,” the CLP leader stated.
The total outstanding capital loan from 2009-10 and 2010-11 stands at Rs. 1237.06 cr. Out of which, the total interest per annum comes to Rs. 1072.09 cr. and Rs. 1131.09 cr. as calculated from the rates of interests shown above. In two years, the accumulated interest comes to 1237.06 x 2 = Rs.2144.18 cr. and 1131.09 x2 = Rs.2262.18 cr. much above the state’s plan outlay of Rs. 1810 cr. only for 2011-12.
“This is where the DAN government is leading the state into serious debt trap to a point that the next government and the new generation will live to recover the legacy of the DAN government,” the Congress reminded the state government leaders.
Current outstanding loan position of Nagaland state
Year Institution Amount of
loan (Rs. in lakh) Range of
Interest rate (%) Amount of interest per annum (Rs. in lakh)
2009-10 Open Market Loan 57741.00 7.58 to 8.40% 4376.76 4850.24
HUDCO 11369.52 9.25 to 10.75% 1051.68 1222.22
NABARD 5614.40 6.50% 364.93 364.93
NCDC 764.96 11.50 to 11.75% 87.97 89.88
REC 3767.97 12.00 to 14.75% 452.15 556.07
PFC 550.50 13% 71.56 71.56
NIC 150.00 8% 12.00 12.00
Total: (a) 79958.35 6417.05 7166.9
2010-11 Open Market Loan 35536.00 8.07 to 8.41% 2867.75 2988.57
HUDCO 5007.53 11.25% 563.34 563.34
NABARD 3731.00 6.50% 242.51 242.51
NCDC 872.79 11.50 to 11.75% 100.37 102.55
REC 1716.94 12.00 to 13% 206.03 223.20
PFC 183.50 13% 23.85 23.85
Total: (b) 47047.76 4003.85 4144.02
Grand total (a+b)
123706.11 10720.90 11310.92
CLP leader Tokheho Yepthomi issued a statement today listing details about the institutions the government has borrowed from, the amount borrowed, the interests and the interest per annum during 2009-2010 and 2010-2011. . The Planning Commission of India (PCI) grants permission to the state government to take loans from financial institutions as part of the annual plan. The permitted limit set by the PCI to borrow was Rs. 250 crore during 2009-10 and Rs. 270 crore during 2010-11.
Yepthomi said – “Sometime back, the Accountant General of Nagaland had cautioned the government to restrict market borrowing and issued its advisory to the state government to invest the loan money in sectors where the government can generate revenue for the state. However, in defiance of this advisory, the state government has been spending the loan money in non-revenue generating sectors.” “Despite these limits set by the PCI and the AG’s caution and advisory, the DAN Govt. had gone on borrowing spree, thereby landing the State into huge debt trap,” the CLP leader stated.
The total outstanding capital loan from 2009-10 and 2010-11 stands at Rs. 1237.06 cr. Out of which, the total interest per annum comes to Rs. 1072.09 cr. and Rs. 1131.09 cr. as calculated from the rates of interests shown above. In two years, the accumulated interest comes to 1237.06 x 2 = Rs.2144.18 cr. and 1131.09 x2 = Rs.2262.18 cr. much above the state’s plan outlay of Rs. 1810 cr. only for 2011-12.
“This is where the DAN government is leading the state into serious debt trap to a point that the next government and the new generation will live to recover the legacy of the DAN government,” the Congress reminded the state government leaders.
Current outstanding loan position of Nagaland state
Year Institution Amount of
loan (Rs. in lakh) Range of
Interest rate (%) Amount of interest per annum (Rs. in lakh)
2009-10 Open Market Loan 57741.00 7.58 to 8.40% 4376.76 4850.24
HUDCO 11369.52 9.25 to 10.75% 1051.68 1222.22
NABARD 5614.40 6.50% 364.93 364.93
NCDC 764.96 11.50 to 11.75% 87.97 89.88
REC 3767.97 12.00 to 14.75% 452.15 556.07
PFC 550.50 13% 71.56 71.56
NIC 150.00 8% 12.00 12.00
Total: (a) 79958.35 6417.05 7166.9
2010-11 Open Market Loan 35536.00 8.07 to 8.41% 2867.75 2988.57
HUDCO 5007.53 11.25% 563.34 563.34
NABARD 3731.00 6.50% 242.51 242.51
NCDC 872.79 11.50 to 11.75% 100.37 102.55
REC 1716.94 12.00 to 13% 206.03 223.20
PFC 183.50 13% 23.85 23.85
Total: (b) 47047.76 4003.85 4144.02
Grand total (a+b)
123706.11 10720.90 11310.92
