State reliant on loans for 3 more years: Devendra Fadnavis

Even as the debt burden of the state has crossed the Rs 3.5 lakh crore mark, it will continue to take loans for the next three years, said chief minister Devendra Fadnavis.

This is because the period for repayment of majority of the loans taken by the government in the past will end in the coming three years, counting the current fiscal. This was revealed by Mr Fadnavis in an interview with The Asian Age on Thursday.

The CM also said that the stock limit for hoarding on importers would be discontinued in the coming days and instead, they would be asked to stick to a time limit within which they would have to clear the stock. The government has also appointed a consultant for unified transport ticketing system in Mumbai, he said.

Elaborating on the weak financial status of the state, Mr Fadnavis said that when the government took over the reins in October last year, the treasury was empty and the public debt was already Rs 3.5 lakh crore. Moreover, the government had paid Rs 8,000 crore as relief to farmers for various natural calamities which hit the state one after the other.

“The tenure of the loans taken by the previous government will end in three years. The repayment of loans has to be made in 2015, 2016 and 2017. This will put further burden on the state exchequer. Hence, the government will have to raise more loans in the next three years,” the chief minister said.

He, however, added that the government would ensure that the funds are spent on productive works, such as infrastructure.

Mr Fadnavis also said the central government is in the process of withdrawing the stock limit on importers owing to the issues being faced by them. “The government has understood that a limit on stock has created impediments for imports and thus it was decided to impose time limit on clearing the stocks instead,” said Mr Fadnavis.

He also said the government had appointed a consultant for unified transport ticketing system for Mumbai. “The passenger has to take a single ticket and with that he will be able to travel in all the transport system — suburban railway, Metro, Monorail and BEST buses — up to the desired designation. We have appointed a consultant for the same. The system is in place in many developed countries,” he said.