Mumbai: With this being an election year, approximately one lakh crore will be allocated for the schemes introduced in the budget to cater to different social groups, however, more loans will need to be obtained this year. The government has provided identical disclosure in the budget paperwork.
Despite the government already having a debt of over seven lakh crores, it has acknowledged the potential rise in government spending to carry out infrastructure projects in the current fiscal year (2024-25). This year, there is a proposal to borrow 1.3 lakh crores. At the conclusion of 2023-24, the state was in debt with 7 lakh 11 thousand crores. Every year, loans amounting to 60 to 70 thousand crores are borrowed.
This year, a loan of 1.3 trillion rupees will be borrowed. In light of the upcoming election, the government has unveiled multiple schemes valued at approximately one lakh crore rupees. Funding is needed in order to carry out these announcements. Spending on development projects has decreased, with money now being allocated to satisfy different social factions. In this context, funds will be allocated for infrastructure facilities by reducing extra debt this year.
'Increase in funding for development projects this year'
Following Tamil Nadu, Maharashtra ranks as the second most indebted state in the country. This year, Tamil Nadu plans to borrow 1 lakh 55 thousand crores and Maharashtra plans to borrow 1 lakh 30 thousand crores.
Development projects of the state necessitate the need for taking out loans. In the fiscal policy documents, the government has stated that additional loans will be acquired this year to fund infrastructure development projects. In 2024-25, a loan totaling 1 lakh, 30 thousand, 470 crores will be borrowed.
