Sri Lanka Crisis: The condition of Sri Lanka trapped in the debt trap has worsened (PTI)
Punjab tops the list of indebted provinces. The Reserve Bank’s report shows that the debt-GSDP ratio in Punjab is the highest, ie around 49.1%. This ratio is for the financial year 2021, while in one year this ratio saw a jump of 6.6 percent.
trapped in debt trap Sri Lanka is moaning. Pakistan is already gathering dust. Recently the Prime Minister was changed in Sri Lanka, but there is no change in the situation. Now you will ask why such a green country like Sri Lanka has gained such momentum? The answer is debt. Sri Lanka is such a country whose economy was once the example of the World Bank (World Bank) did not get tired of giving. Many Asian countries were advised to follow in his footsteps. But today the situation is just the opposite. Sri Lanka today is yearning for basic facilities. petrol (Petrol Price) are lying, people are roaming on the streets with LPG cylinders.
The condition of the Sri Lankan rupee has become so bad that one rupee there has reached the equivalent of 0.22 rupees of India. This happened because Sri Lanka got into the habit of ‘drinking ghee by taking loans’. Gradually the entire foreign currency became empty. Some similar trends are being made in some provinces of India where big promises are made to win elections. To fulfill the promises, loans are taken from the government-market (Fiscal Deficit). The situation becomes such that later the sweat of other governments is spilled in handling the situation.
To understand this, you can see the report of the Reserve Bank. The name of this report is State Finance – A Study of Budget. The report says that the states and union territories of India have a debt of about 70 lakh crore rupees. This loan is because some province gives free scooty and some free electricity. No laptop or smartphone. All these expenses are met by taking loans. For example, the total liability of the UP government is 6.53 lakh crores. Free electricity promise in Punjab will be fulfilled by taking new loan which is coming into effect from July. Punjab already has a debt of more than 2.55 lakh crores. There are names of many more states in this list.
fiscal deficit alarming
Now the question is why it is being said that the condition of some provinces will be like Sri Lanka. This is because the states which are under the burden of debt, their situation is eighty-eight and the expenditure is rupees. The state GDP of the debt-ridden states is very low in comparison to the expenditure. According to one figure, the total fiscal deficit of the state governments is Rs 8.19 lakh crore, which is equal to 31 percent of the GDP. If the budget of all the states is added, then its amount becomes more than the budget of the center. The budget of the central government for the current financial year is 37 lakh crores. Whereas, the size of the state budget is more than 42 lakh crore (42.95 lakh crore). From this, we can guess on which landmine the states of the country are sitting and here too when people should come down on the roads with cylinders, it cannot be said.
At present, the debt of the states is running at about 40 percent of the Gross State Domestic Product or GSDP, which is more than twice what it can afford. The states which have the highest average debt and GSDP are Punjab (53.3%), Rajasthan (39.8%), West Bengal (38.8%), Kerala (38.3%) and Andhra Pradesh (37.6%). The surprising thing is that in the financial year 2021, there are 27 out of 31 states in the country whose debt ratio has increased by 0.5% to 7.2 percent. The biggest reason for this is that the liabilities of these states are increasing very fast. The corona epidemic has worked to set fire to it even more.
Punjab in red mark
Punjab tops the list of indebted provinces. The Reserve Bank’s report shows that the debt-GSDP ratio in Punjab is the highest, ie around 49.1%. This ratio is for the financial year 2021, while in one year this ratio saw a jump of 6.6 percent. This is the worst situation after 1991 when a state is caught in the web of such terrible debt. The biggest role in this is being told of loan waiver, after that the name of free electricity comes. The figures of Punjab show that all the money earned goes into the debt liability. In such a situation, no amount is left for development works.
Bad condition of Rajasthan too
In the case of loans, the name of Rajasthan comes after Punjab. In the year 2021, the condition of this state worsened when the debt liability increased by 7.2% in a year. At present, its debt-GSDP ratio is 42.6%. In terms of earnings and liabilities, Bengal is the third most indebted state. The matter of concern in all these states is the continuous increase in the loan amount. Haryana, Karnataka and Tamil Nadu are the states where debt levels have increased the fastest in the last three years. ‘India Spend’ A statistic shows that Maharashtra and Gujarat are the only provinces with the highest industrial potential among the 5 most indebted states of the country. There is a possibility in these states that they will be able to settle the debt with their industrial capacity.
good track of these states
On the other hand, states like Bengal, Andhra Pradesh and Uttar Pradesh are still on the path of development and in these provinces more than 70 percent of the population depends on agriculture. Therefore, their debt condition may get worse. There are also some states which are showing some hesitation in taking loans and reducing their dependence on loans. According to the data, some states are taking loans because they have to speed up development works, while some states are taking loans to clear their past liabilities. In this the name of Bengal comes. The law of economy is that taking a loan is not bad, but it is very important to see in which item it is being taken. Some states reduce the impact of debt by increasing their GDP. Bihar is doing the best job in this list. After this Rajasthan and Chhattisgarh are named. The debt-GSDP ratio is very low in these states, while Bengal, UP and Punjab have higher.