Key Points

The Madhya Pradesh government is seeking another Rs 4,500 crore loan from the Centre, pushing its total debt beyond the annual budget. Congress leader Kamal Nath has strongly criticized the BJP government for prioritizing luxury expenses like buying planes and renovating ministerial bungalows over farmer welfare. The state's total debt now stands at Rs 4.30 lakh crore, raising serious economic concerns. This financial strain highlights the ongoing tension between the ruling BJP and the opposition Congress regarding fiscal management.

Key Points: MP Debt Crisis Escalates as Mohan Yadav Seeks Rs 4,500 Crore Loan

  • MP's debt crosses annual budget at Rs 4.30 lakh crore
  • State seeks second loan in current financial year
  • Congress alleges wasteful government expenditure
  • Criticism of minister's luxury purchases
2 min read

Cong raises apprehensions over growing debt as MP Govt seeks another loan from Centre

Congress criticizes BJP's Madhya Pradesh government for mounting debt, luxurious spending amid financial strain and farmer struggles

"This loan money is being spent on the luxuries of the BJP government - Kamal Nath"

Bhopal, June 5

As the Chief Minister Mohan Yadav-led Madhya Pradesh government is all set to borrow Rs. 4,500 crore from the Centre, the Opposition Congress raised apprehensions that with this new loan, the state's total debt of Rs 4.30 lakh crore will cross its annual budget of Rs. 4,21,032 crore.

The Congress accused the BJP-led government of pushing Madhya Pradesh into a quagmire of debt and not taking any steps to bring the borrowings down and instead indulging in luxuries like buying new planes, cars and renovating bungalows of ministers.

The Congress slammed the Madhya Pradesh government of not taking any initiatives to reduce wasteful expenditure on luxuries of its own in the midst of a financial crunch.

The criticism came after the Chief Minister Mohan Yadav government on Tuesday initiated formalities for a fresh loan of Rs 4,500 crore from the Centre, its second borrowing this financial year.

With this fresh loan, the state's total debt went past the Rs 4.30 lakh crore mark, which is well beyond its annual budget of Rs 4,21,032 crore presented for the current financial year.

The total debt of Madhya Pradesh was Rs 4,21,740 crore as on March 31.

"Despite taking huge amounts of loans, the BJP government has not even given the Minimum Support Price on crops to the farmers. If this loan is being said to be used for the welfare of farmers and the youth of the state, then where is this money being spent," veteran Congress leader and former Madhya Pradesh Chief Minister Kamal Nath said in a statement on Thursday.

“While the Madhya Pradesh government has often maintained that the loans taken are being utilised for financing productive development programmes and projects in the state, the borrowings mainly bear the cost of development and welfare schemes.

“However, despite the rising loan burden, the Madhya Pradesh government has not hesitated in buying a state plane and new cars for ministers and renovating ministers' bungalows,” he said.

“On July 10 last year, the Madhya Pradesh government cleared a proposal to buy a jet plane worth over Rs 230 crore.

"This loan money is being spent on the luxuries of the BJP government and its leaders. While the public is being crushed under the burden of inflation day by day," Kamal Nath further added.

- IANS

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Reader Comments

R
Rahul K.
This is worrying! How can state debt cross annual budget? MP needs fiscal discipline, not new planes. Farmers are suffering while ministers enjoy luxuries. Govt must explain where every rupee is going. #AccountabilityMatters
P
Priya M.
Both parties are to blame. Congress left debts too when they were in power. But buying jets when farmers struggle? Wrong priorities! 🤦‍♀️ MP needs better financial planning - cut wasteful expenses first before taking more loans.
A
Amit S.
If loans are for development, show us the projects! As a taxpayer from Indore, I want transparency. No problem with borrowing if it's for infrastructure, but Rs 230cr plane? That's just shameless when basic services need improvement.
S
Sunita T.
This is why states need financial autonomy. Always depending on Centre for loans creates these problems. MP has resources - focus on generating revenue instead of borrowing! Our children will pay for this debt burden 😔
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Vikram J.
The plane purchase was necessary for official travel efficiency. But yes, government should balance luxuries with public welfare. Maybe Congress has valid points this time - need audit of all expenditures. Jai Hind!
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Neha P.
As a business owner in Bhopal, I see poor roads but ministers get new cars? Priorities all wrong! Loans should go to job creation, not VIP culture. MP youth need opportunities, not more debt burden on our future. 😤

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