Assam Government Plans to Borrow Funds for Infrastructure and Welfare Projects

Guwahati: The Assam Government has decided to borrow another Rs 1,000 crore, less than a fortnight after raising an identical amount on 27^th October. The latest borrowing is scheduled for 9^th November  through an auction of government securities, for which the state Finance Department has already submitted a proposal to the Reserve Bank of India (RBI).

Before this, the state borrowed Rs 3,100 crore in September and Rs 2,000 crore in October. A source in the Finance Department reportedly indicated that the government may raise another Rs 1,000 crore later this month.

The repeated borrowings come amid growing expenditure on welfare schemes and other government commitments. The monthly expenditure on the Orunodoi scheme alone reportedly exceeds Rs 450 crore. In addition, the recently launched Nijut Babu and Nijut Moina schemes are estimated to cost the state around Rs 100 crore every month.

As per report, Assam's total outstanding debt has crossed Rs 2 lakh crore, while the per capita debt burden has risen to approximately Rs 42,500. The state's borrowing has drawn criticism from Opposition parties and various organisations, which have raised concerns over the growing financial burden.

However, the state government has maintained that borrowing is necessary to fund major infrastructure projects, welfare initiatives and investment-driven development.

Available figures indicate that Assam's total debt stood at around Rs 41,964 crore in March 2016. It rose to Rs 89,709 crore during the tenure of Sarbananda Sonowal. The latest reported figure stands at approximately Rs 2.13 lakh crore.

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