Mizoram's debt increases by 71.59%, alleges Youth Congress

Mizoram's debt increases by 71.59%, alleges Youth Congress.

The Youth wing of Indian National Congress Mizoram, has alleged that the state liabilities in four years of the Mizo National Front (MNF) government have increased by 71.59 percent against the total liabilities accumulated over the last 35 years.

According to a statement issued by the Congress youth, the state is now reeling under an acute financial crunch due to poor fiscal management.

The youth wing stated, "The state's total debt from December 2018 when the MNF came to power is estimated to be Rs. 12,553 crores and it has increased by almost double from the total liabilities accumulated over the last 35 years.”

They further hold that during four years of the MNF government, the state's total liabilities have increased by Rs. 5,217.53 crores. Congress alleged that the state government is in a fix as it could not meet the basic needs or requirements due to the current fiscal shortage.

According to a report published in the Mizoram Post, Mizoram has been reeling under a financial crunch owing to several reasons, including the COVID-19 pandemic and non-receipt of the state's share of taxes and grants from the Centre amounting to over Rs. 2,630 crore during the fiscalS 2019-2020 to 2020-2021.

CM Zoramthanga, who also holds the finance portfolio, informed the state assembly in early September that the state government has availed loans amounting to Rs. 256.396 crores from the Reserved Bank of India (RBI) as ‘overdraft’ for six times during July 21 and August 2 in the current fiscal.

Moreover, the government also availed loans through a special drawing facility and ways and means advances on several occasions.

High authorities said that the state government will again avail loan from RBI amounting to Rs. 100 crore as open market borrowing. During his two-week long visit to New Delhi recently CM Zoramthanga had called on Union Finance Minister Nirmala Sitharaman over the state's financial condition and sought the Centre's help.

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