BHOPAL: After inheriting a khali khazana, the Kamal Nath government has decided to seek a fresh loan of Rs 1,000 crore to tide over the financial crisis in the state.A notification issued by the finance department confirmed that the government is seeking Rs 1,000 crore loan from the capital market through RBI at an interest of 8.37% per annum which is to be paid in two instalments every year till 2028.In the auction, more than 10 states will participate, including Chhattisgarh Andhra Pradesh , Assam, Bihar, Uttar Pradesh, Tamil Nadu and West Bengal for a total security amount of Rs 12,000 crore.“We have decided to draw a fresh loan amount of Rs 1,000 crore. We will draw more and would ensure that the amount is spent on the welfare of the public. Unfortunately, we received an empty coffer from the previous BJP government and also the GST share of previous quarter of the state has been slashed by the Centre, but we will try to generate new revenue methods to meet our demands", state finance minister Tarun Bhanot told TOI.An official notification issued by the RBI on Tuesday stated, "The Madhya Pradesh government has been approved a notified amount of Rs 1,000 crore as state development loan for a period of nine years at 8.2% weighted average yield".Sources disclosed that in the first financial year of its tenure, the state is under a debt of Rs 1,60,871.9 crore till 2016. With the new advance, the amount of loan drawn by the state during the financial year 2018-19 would reach Rs 13,500 crore. It was also disclosed that the total debt on the state has increased to Rs 1.75 lakh crore in the last two years with an average debt burden of Rs 13,900 on every citizen of the state.The supplementary demands tabled in the state assembly's first session estimated an additional fund of Rs 22,200 crores to meet the expenditures on ambitious schemes mentioned in the Congress' Vachan Patra. It was estimated that Rs 5,000 crore would be necessary to meet the initial expenses on farm loan waiver scheme through a total 55,000 crore is now being estimated by the farmer welfare and agriculture department after relaxation in the dates for the beneficiaries. A similar amount is necessary for providing stipend to unemployed youths as promised in the Congress manifesto."We are also keeping a tab on overspending by departments apart from expenditure on propaganda. We have also decided to check irregularities and levy new taxes which would have no direct impact on the public like liquor and other similar products", said Bhanot, adding that, “the previous government was dependent only on taxes collected from petroleum products and failed to generate new avenues for revenue”.

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