Leader of the Opposition and Congress Legislature Party (CLP) chief Tokheho Yepthomi has accused the NPF-led DAN government in Nagaland of spending money for non-revenue generating sectors and in the process landing the state into a serious debt trap “to the point that the next government and the new generation will live to recover the legacy of the DAN government.”
In a startling statement the CLP leader said the government of Nagaland’s current outstanding capital loan from the period 2009-10 and 2010-11 stood at a whopping Rs.1237.06 crore, tabulated on the basis of rates of interests on loans taken during the two financial years.
Tokheho further stated that the accumulated interest for the two financial year period comes to Rs.2144.18 crore and for variation in interest rates, the two-year figure was Rs.2262.18 crore. He pointed out that the figures were “much above the state’s plan outlay of Rs.1810 crore for the current 2011-12 period.
Clearly indicting the DAN government of financial mismanagement, Tokheho claimed that the Planning Commission of India (PCI) granted permission to the state government to obtain loans from various financial institutions as part of raising fund for the annual plan. He stated that PCI set a borrowing limit of upto Rs.250 crore on the state for 2009-10 while for 2011-12 the limit was Rs.270 crore.
Further, the CLP leader pointed out that even the Accountant General of Nagaland had sometime back, “cautioned” the state government to restrict market borrowings and also issued an advisory on the state to invest borrowed money in sectors where the state could generate revenue.
However, he said, “in defiance of this advisory” the state government has been spending money for non-revenue generating sectors.
Tokheho said despite limits set on market borrowings by the PCI and the caution and advisory from the AG, the DAN government has been on a “borrowing spree, thereby landing the state into a huge debt trap.”
The CLP leader provided the following tabulation of the outstanding loans of Nagaland.
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