Dimapur, November 16 (MExN): The Additional Chief Secretary and Finance Commissioner of Nagaland, Toshi Aier has clarified that the outstanding debt of the State government stands at Rs. 5221.67 crore as on March 31, 2011 as per provisional account and not Rs.8000 crore as alleged by the Nagaland Pradesh Congress Committee (NPCC). Stating that NPCC’s debt figure is incorrect, Aier assured that the outstanding debt of the State government is “maintained well within the limits prescribed by the 13th Finance Commission and there is no cause of alarm or wild speculation.”
The Finance Commissioner stated that the State government has in the past clarified that it “cannot” and “does not” borrow without the prior approval of the Planning Commission and the consent of the Ministry of Finance. He said that the debt servicing will cost the State government Rs. 785.09 crore during 2011-12 as per BE 2011-12. This is 19.28% (less than one fifth) of the total non-plan expenditure budget of Rs. 4071.60 crore during the same year and as such it is incorrect to say that debt servicing accounts for major chunk of non-plan fund, the Commissioner stated.
The Finance Commissioner stated that the State government has in the past clarified that it “cannot” and “does not” borrow without the prior approval of the Planning Commission and the consent of the Ministry of Finance. He said that the debt servicing will cost the State government Rs. 785.09 crore during 2011-12 as per BE 2011-12. This is 19.28% (less than one fifth) of the total non-plan expenditure budget of Rs. 4071.60 crore during the same year and as such it is incorrect to say that debt servicing accounts for major chunk of non-plan fund, the Commissioner stated.
