Shillong, December 1: Vincent H. Pala, President of the Meghalaya Pradesh Congress Committee (MPCC), has alleged that under the leadership of the National People’s Party (NPP), Meghalaya will sink into severe debt, which will greatly affect the State.
Speaking to reporters, Pala stated that one of the biggest problems with the MDA 2.0 (NPP-led Government) is its financial management, especially with the excessive borrowing.
He claimed that the current debt of Meghalaya has reached 37% (or 40%) of the GSDP (Gross State Domestic Product), which is the highest debt ratio in the country (India), where the national average is only 28%. Further adding, “When the debt has exceeded 40% of the GSDP, how will the State be able to sustain itself against this debt?”
Pala reported that the revenue collected by the State itself is only ₹4000 crore, while the revenue collected from ‘taxes’ is ₹9000 crore. This means the state has to rely heavily on the central government and on borrowing to cover the deficit.
Speaking to reporters, Pala expressed that this situation is occurring because, instead of finding ways to boost the State’s economy, the revenue leakage is too high from every side. Therefore, when revenue is short, the government has to borrow, and it borrows in dollars, which currently stands at ₹86 per dollar, which will have a greater impact later.
Pala alleged that contractors pour much of this borrowed money into roads, and this benefits people in power, because the ministers themselves are contractors. He stated that there are no job distributions for the public, which is why the people are becoming poorer day by day.
(4FrontMedia news)
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