Madhya Pradesh Government Faces Mounting Debt, Initiates New Spending Despite Budget Constraints

Madhya Pradesh Government Faces Mounting Debt, Initiates New Spending Despite Budget Constraints

29 Sept,2023, Madhya Pradesh:

The Madhya Pradesh government is grappling with a staggering debt of ₹3.85 lakh crore, compared to the ₹20,000 crore during the Digvijay Singh government. Despite this, the current government under Shivraj Singh Chouhan has announced new schemes, including the ‘Ladli Behna Yojana’, pledging ₹1 lakh crore over the next five years. Other initiatives such as increasing stipends for students and raising salaries for government employees have added further strain. While these schemes aim to benefit citizens, experts express concerns over the state’s financial health.

This financial dilemma raises questions about the government’s decision-making. Experts suggest that the government’s options are limited: either increase taxes to boost revenue or cut budgets for development projects. The government’s debt has doubled in just two years, leading to a scenario where every citizen now carries a burden of ₹50,000.

The ongoing political promises, especially the ‘Ladli Behna Yojana’, are estimated to cost nearly ₹1 lakh crore over the next five years, far exceeding the initial projection of ₹61,890 crore. This substantial financial burden requires the government to take drastic measures to stabilize its fiscal health.

Despite these challenges, the government continues to introduce new schemes, raising concerns among financial experts about the sustainability of such initiatives. The financial future of Madhya Pradesh remains uncertain, with citizens closely watching the government’s decisions and their impact on the state’s economy.

India Madhya Pradesh Politics