Bailout: Mamata plans war on ‘unresponsive’ Centre

Finance Minister Amit Mitra told the Assembly yesterday that unless the Centre steps in immediately,the state — already buried under a debt of Rs 2,08,382.58 crore — will sink deeper into crisis,and all developmental activities will come to a halt.

Mitra said details submitted by the Accountant General of India showed that West Bengal’s outstanding debt until February was Rs 2,05,368.13 crore. On March 31,2011,before the Left Front was voted out of power,the burden was Rs 1,87,387.40 crore. An interest of Rs 16,097.31 crore accumulated in 2011-12,with Rs 23,199.96 crore — including principal and interest — being repaid until the end of the last fiscal.

“If we repaid Rs 23,000 crore-something this year,next year it will be higher because of cumulative interest. It is not possible for us to stop repayment; the Reserve Bank of India deducts the money from the state’s kitty,” Mitra told The Indian Express. “What we basically wanted from the Centre was a three-year moratorium (on repayment),and that the Centre should pay the Rs 23,000 crore-something to those who lent us the money. At the same time the debt is restructured,so that we get a breather.”

“The Centre did this favour to Punjab so why should we not get it?” Mitra asked.

State officials and economists said the outlook was grim. “The Left Front government left a Rs 1.8 lakh crore burden. With no relief flowing in,the burden will grow heavier. We won’t be able to provide matching grant to central schemes like NREGS. Development will come to a standstill,” Abhiroop Sarkar,economist and vice-chairman of West Bengal Industrial Developmental Corporation,said.

The CPM blamed the Mamata government’s alleged fiscal mismanagement.

“The state has to borrow for various purposes,and during our time the burden was something like Rs 1.87 lakh crore. Look at the way they are spending money on festivals,birthdays,etc. There is no generation of revenue,still they are indulging in unproductive spending,” said Anisur Rehman,deputy leader of the Left Front legislature party and chairman of the assembly’s public accounts committee.