Bengal rejects Rs 3400 cr World Bank loan

Equally unacceptable is the Bank8217;s suggestion of reducing fiscal deficits, better tax collection and restructuring the bloated Government employee rolls.

While Basu and Dasgupta may try to use this issue for electoral advantage, their claim that the rejection of the World Bank loan will not affect the projects as 8220;money can be got from elsewhere,8221; rings hollow as efforts to attract investments have proved disappointing and Indian financial institutions are no longer willing to extend loans without assessing its soundness.

While Basu and Dasgupta are claiming, 8220;West Bengal has never failed to repay loans,8221; it is not clear why they are resisting an independent survey of the State8217;s economy. The last independent economic survey carried out by McKinsey amp; Co early this year brought out a number of unpalatable truths which the State Government has brushed under the carpet.

Industry circles are extremely disappointed by the State Government8217;s reaction and say this is bound to send wrong signals both within the country and abroad. But the needy will be the hardest hit, as drinking water and sanitation projects in municipal areas will be shelved. Health centres and hospitals will not get new buildings. And the essential 900 km Expressway, estimated to cost 2000 million, may not take off.