An overreliance on loans and central government funds could threaten the financial health of Meghalaya in years down the line, opposition MLA Ardent M Basaiawmoit said today.
Taking part in the general discussion on the budget, Basaiawmoit said that the Voice of the People Party (VPP) was not opposed to spending or borrowing per se but is concerned whether the state can pay this money back and what consequences it will suffer if it is unable to.
He pointed out that as per the budget presented recently, the liabilities of the state government – open market loans, loan from NABARD and loan from government of India.
From 2018-19 to 2024-25 there is an increase of 136.87 percent loan taken from the open market and 1619 percent increase from the government of India 119 percent from NABARD.
“When we look at the repayment made and the balance as on the March 31, 2024 loans from the open market is Rs. 12, 209.50 crores and during 2023-24 it is Rs. 2786.10 crore and out of this amount the government is paying Rs. 873 crores on principle Rs. 941.60 crores in interest,” Basaiawmoit said.
He said that when the loan amount is huge it leads to high interest payment and thereby reducing funds for development.
The Nongkrem MLA said that the balance as on March 31, 2025 is Rs. 14, 122.60 crores.
He asked how the government will repay when it has to repay more interest than the principal amount.
Basaiawmoit also said that the government failed to prevent the drainage of resources in the state.
The VPP legislator told the House that he received information from North Garo Hills district that there has been rampant illegal transportation of coal.
“Check points installed by the government are illegally allowing passage of 150-200 truckloads each night,” he said.
According to him a truck weighing 45 tons of coal is supplied to Assam without government challans and royalty.
Basaiawmoit also pointed out that the Comptroller and Auditor General (CAG) had warned if the state government does not take remedial measures as far as spending is concerned the state will be heading towards a debt trap.
He also said that the Chief Minister of the state and his officers seem to take this observation very lightly.
The VPP legislator from Nongkrem also questioned how two advisers of the government were enjoying cricket in Dubai even as he stated that he is not saying they used government money to travel but weren’t they using any government facility to travel abroad.
During the discussion, Basaiawmoit said that after he was elected in 2023 he wrote to the Deputy Chief Minister in-charge PWD (Roads), Prestone Tynsong apprising him of the conditions of the roads in Nongkrem.
“But sadly no action has been taken by the department. I have met the officers concerned to discuss the condition of the roads but till today no action has been taken. These are not new roads but existing ones that need repair,” he added.
On consultants appointed by the state government in every department he asked what is the use of having engineers, IAS and MCS officers, when they do not exercise their duties.
Basaiwmoit also said that he was told that in some of the departments where consultants are appointed officers are rendered jobless and the consultants don’t respect them since they feel they have a direct connection with the Chief Minister’s Officer.
