WB to borrow Rs 3,000 crore through open market on Monday

Prior to this, the state government borrowed a total of Rs 13,000 crore in five tranches during the previous two calendar months, out of which three tranches were during January 2022 and two tranches were in December 2021.

Kolkata (West Bengal): The cash-strapped West Bengal government will be going for an open market borrowing of Rs. 3, 000 crore on February 28. According to a notification from the Reserve Bank of India (RBI), a total of 13 Indian states are going for a total market borrowing of Rs 22203 crore on the day, out of which West Bengal will be the highest borrowing state at Rs 3000 crore.

Prior to this, the state government borrowed a total of Rs 13,000 crore in five tranches during the previous two calendar months, out of which three tranches were during January 2022 and two tranches were in December 2021.

As the state government is again going for a fresh market borrowing of Rs 3,000 crore, the state government will be borrowing a hefty amount of Rs 16,000 crore during the 77- day period between December 15, 2021, and February 28, 2022.

Worth mentioning here is that in May 2011, when the Trinamool Congress regime came to power in West Bengal ousting the 34-year long Left Front rule, the total accumulated debt of the state government was Rs 1.94 lakh crore. By the end of the current financial year of 2021-22, the same accumulated debt figure is expected to cross Rs 5.50 lakh crore.

Previously also, ETV Bharat highlighted the over-dependence of the West Bengal government on market borrowings which the economists attribute to three factors.

Firstly, during the last ten 10 years, the non-plan expenditure of the state government has inflated at such an alarming stage, which compelled it to go for market borrowing to meet those expenses.

Secondly, since the state government does not have a steady and alternative source of the state's own revenue generation, it has to depend on market borrowing.

Finally, economists apprehend that the state government is on the verge of falling into the debt trap, where it has resorted to fresh borrowings to service the earlier debts.

Economists are also of the view that currently, the debt to gross state domestic product ratio (GSDP) ratio in West Bengal has reached 30 per cent and things will go out of control if it reaches 50 per cent.

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