Nagaland has outstanding public debt of Rs 11,407.41 cr as on March 31, 2022: CAG
DIMAPUR, MARCH 29: Nagaland has an outstanding public debt of Rs 11,407.41 crore as on March 31, 2022, according to the Report of the Comptroller and Auditor General of India (C&AG) for the year ended 31st March 2022 laid in the State Assembly.
The report said the outstanding public debt rapidly increased by Rs 3,602.84 crore from Rs 7,804.57 crore in 2017-18 to Rs 11,407.41 crore in 2021-22 whereas the Debt/GSDP ratio increased from 32% to 35.18% during the same period.
During 2021-22, the outstanding public debt (Rs 11,407.41 crore), increased by Rs 758.38 crore (7.12%) compared to the previous year (Rs 10,649.03 crore). Between 6.15% and 7.50% of the revenue receipts were used by the State for payment of interest on the outstanding public debt while the average rate of interest ranged between 7.40% and 8.40% during last 5-years period from 2017-18 to 2021-22.
Maturity profile of outstanding stock of public debt as on March 31, 2022 indicates that out of the debt of Rs 11,497.41 crore, 48.23% outstanding public debt (Rs 5,502.20 crore) needs to be repaid within the next 7 years while the remaining 51.77% (Rs 5,905.21 crore) of outstanding public debt is in the maturity bracket of more than 7 years.
Of the total outstanding public debt, internal debt consisting of market borrowings, loans from LIC, GIC, NABARD, etc. constituted 94.63% (Rs 10,794.87 crore).
Further, the report said based on the outstanding public debt stock as on March 31, 2022, repayment of public debt and interest would increase from Rs 1,524.17 crore in 2022-23 to Rs 1,818.70 crore in 2031-32 (19%).
Moreover, out of Rs 11,407.41 crore, Rs 10,215.03 crore was the principal amount of market loan taken by the State. The State is liable to pay an interest of Rs 5,148.04 crore at the end of repayment of these loans, if the loans are repaid as per the maturity profile.
The CAG report recommended the State Government ensure that mobilized debt resources are used adequately for incurring capital expenditure for creation of assets. The increasing trends of revenue expenditure be corrected by identifying potential wasteful expenditure and adopting economy measures across Departments. Own non tax revenues need to be augmented to meet the interest on debt liabilities, it suggested.
(Page News Service)