Finally,Bengal gets bailout package

Apparently,the package has been sanctioned after the Bengal government agreed to present a budget with internal resource mobilization and also a fiscal discipline road-map. Mamata Banerjee had earlier planned to present a vote-on-account for the rest of the fiscal year with no new tax proposals.

Commenting on the Centre’s gesture,Chief minister Mamata Banerjee said it was not an “economic package”. “The state has got its rightful dues and we do not want to beg. But we are thankful to the Centre for giving us Rs 9,240 crore,” said Banerjee.

Banerjee,while announcing the package,said,“We are not at all satisfied with the amount,but it will help us to resume and run several developmental projects in the state for next four to five months. After that,we have to again start talking to the Centre. But in the mean time,we will try to be self-sufficient and earn our own revenue. With this package,we can at least say that something is better than nothing.”

Mamata further said: “We cannot use this fund to pay salaries to our employees. Of the Rs 9,240 crores,Rs 8750 crore is for the development of 13 backward districts in the state while,Rs 94 crore are allocated for the Left Wing Extremism affected districts. For agricultural development,Rs 300 crore have been allocated and Rs 100 crore have been allocated for green-energy projects.”

Moreover,the Central government has increased the borrowing limit for the state. The state can now borrow an additional Rs 2706 crore. Presently,the borrowing limit for the state is Rs 17,828 crore.

Besides,it can borrow Rs 3068 crore as Fiscal Responsibility and Budget Management (FRBM) loan.

“In two months,we have repaid a loan of Rs 3800 crore and so we are entitled to borrow Rs 3432 crore now,” Banerjee said.

When asked about the new taxes,Banerjee said,“Amit Mitra has started working on the budget. He will be a better person to comment on the taxes.”