For the first time since independence, Orissa’s debt stock has started coming down. The state has started showing signs of escaping the debt trap.
“The debt burden has come down to Rs 35,875.58 crore in 2007-08 from Rs 37,244.51 crore in 2006-07,” said state finance minister Prafulla Chandra Ghadei. “The debt, which was 40.87% of the GSDP in 2006-07, came down to 34.73% in 2007-08.”
Ghadei said the debt burden could be reduced through measures like pre-payments and swapping of high cost loans. According to the finance minister, this can be possible as the state achieved revenue surpluses by expenditure compressions and revenue generation.
Orissa’s debt burden, which was a meagre Rs 88 lakh in 1947-48, soared to Rs 18,100 crore in 1999-2000 when the Biju Janta Dal (BJD)-led coalition government came to power. Then it further increased to Rs.37,244.51 crore in 2006-07.
The minister said revenue expenditure has increased to Rs 9390 crore in 2007-08(AG audited report) from Rs 2420.57 crore in 1999-2000. Plan expenditure has reached Rs 7500 crore from Rs 2331 crore during the same period. Development expenditure, too, increased to Rs 13,059 crore from Rs 6333.51 crore in 1999-2000.