Post News Network
Bhubaneswar, March 18: Total debt level of the state government is likely to reach Rs 64,991.83 crore for the financial year 2016-17 from Rs 52, 330.84 crore level in 2015-16 as per revised estimates.
“The year-end debt stock for the financial year 2016-17 is estimated at Rs 64,991.83 crore which is 16.96 per cent of GSDP,” the state Finance Minister, Pradip Kumar Amat said in the Budget speech.
Subsequently, this will increase the debt to GSDP ratio to 16.96 per cent in 2016-17 from 15.75 per cent in the current financial year.
The Budget document, however, highlighted that debt level of the state government has been reduced substantially in the last one decade.
“The state had one of the highest debt-GSDP ratio among all states of India at 50.73 per cent as on March, 2003 compared with all states’ average of 34.21 per cent worked out by the 12th Finance Commission. As on March, 2015, this stood at 13.97 per cent which is estimated to be 16.96 per cent by the end of 2016-17,” it said.
Meantime, interest payment in 2016-17 is estimated to be Rs 4,650 crore from Rs 4,136.44 crore in 2015-16. “The ratio of interest payment to revenue receipt should be brought down to 15 per cent as per 12th Finance Commission recommendations. Orissa has been able to achieve the target during 2007-08 and the ratio has been brought down to 4.93 per cent in 2014-15,” the Budget said adding that it is estimated to be at 5.95 per cent in 2016-17.