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Aruchal finces in a mess'

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  7 April 2015 12:00 AM GMT


Itagar, April 6: Expressing concern over the ongoing fincial crisis in the state, expelled Congress MLA Kalikho Pul today said that doomsday for Aruchal Pradesh is looming large if concrete steps are not taken immediately by the government. “The fincial position of the state is grave with the government running in overdraft with RBI to the tune of 449.76 crore. The salaries of government employees have not been cleared while contractors’ bills are pending even after closing of the fincial year,” Pul, who is also the former Fince Minister, told a Press conference here.

He said, the government had issued post-dated checks to the contractors with validity extended to April 30 next.

“Most of the government cheques have been alleged bounced,” he said adding, the government had even issued an order to stop bank transaction from April 1 to 7.

Reacting to the government spokesman statement regarding accumulated deficit of the state government to the tune of Rs 4486.74 crore in the last ten years, Pul said that the amount is even higher than 6000 crore which is not deficit but dues of man-made committed liabilities. Presenting year-wise balance of the state government with RBI, Pul disclosed that during his tenure as fince minister the balance with RBI during 2007 was Rs 30.54 crore, during 2008 (Rs 581.32 crore), 2009 (Rs 474.74 crore), 2010 (822.18 crore) and during 2011 it was 855.65 crore.

“Since 2012, the position of balance with RBI deteriorated after I was removed from the fince portfolio. In 2011 the balance was Rs 193.82 crore, in 2013 it was 195.16 crore and in 2014 it was zero with an overdraft of Rs 449.76 crore,” he disclosed quoting official records.

He said, as per agreement the minimum balance of the state government with RBI should be 26.27 lakh. However, he said, the RBI allows the state government to spend 47.28 crore as special wage and means and an amount of Rs 97.50 crore as normal wage and means even after nil balance. The bank also allows another 14 days time to spend money as over draft by charging extra five per cent interest in addition to 8 per cent existing interest, which comes to 13 per cent.

“The RBI will adjust the overdraft with 13 per cent interest from central funds which comes to the state account. This amount comes nearly to Rs 500 crore annually if the state goes on overdraft,” he said.

Squarely blaming the chief minister for the present situation, Pul said that the dismal fincial scerio of the state was because of improper planning and high expenditure.

Giving the details of non-plan fund during 2014-15, Pul said that a total of Rs 3541.74 crore was received by the government under various heads including, share of central taxes (Rs 984.26 crore), Revenue Deposit Gap Grant (Rs 364 crore), normal central assistance (Rs 1128.95 crore), special central assistance (Rs 800 crore), net small saving loan (Rs 38.48 crore) and market borrowing (Rs 226.05 crore).

“When the non-plan fund could be spend on salaries, wages, pension and POL, what was the necessity to made expenditure from the plan fund which resulted in the present fincial situation,” he wondered.

Stating that the Centre had released an amount of 6911.55 crore to the state under centrally sponsored schemes in the past four years, Pul alleged that the fund released were being misused without any proper accounts.

“The state government is liable to answer for all the projects which were completed, which are under progress and which have never been executed under these schemes,” he added.

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