Madhya Pradesh Government's Debt Surges to ₹3.9 Lakh Crore Amid Rising Borrowing
MP Govt Takes Additional ₹5,000 Crore Loan, Plans to Raise ₹15,000 Crore in Two Months; Debt to be Used for Infrastructure Development
BNH Special Correspondent 
Bhopal- The Madhya Pradesh government’s debt has risen significantly, reaching ₹3.9 lakh crore as of September 2024, compared to ₹3.75 lakh crore as of March 31, 2024. This sharp increase follows the state's consistent borrowing over the last two months, with plans to take another ₹5,000 crore loan ahead of the upcoming Navratri festival.
The additional loan will be taken in two installments of ₹2,500 crore each on September 24, marking the second time in September alone that the government will raise such funds. In August, the government borrowed ₹10,000 crore, bringing the total borrowing for August and September to ₹15,000 crore.
In contrast, no loans were taken in the first four months of the fiscal year 2024-25 due to sufficient liquidity. However, the state government now requires funds to drive key infrastructure projects. The Finance Department has sent a "Letter of Willingness" to the Reserve Bank of India (RBI) for approval of the loan.
Recent Borrowing Breakdown:
- ₹5,000 crore loan taken on August 6, 2024
- ₹5,000 crore loan taken on August 27, 2024
- Another ₹5,000 crore to be raised on September 24, 2024
The loans will be used primarily for long-term infrastructure development, with installments spread over 12 and 19 years. The state’s borrowing capacity for the fiscal year is capped at ₹64,000 crore.
As per the fiscal regulations, Madhya Pradesh can borrow up to 3% of its Gross State Domestic Product (GSDP), which is currently around ₹15 lakh crore.
Key Figures:
- MP Govt debt (March 31, 2024): ₹3.75 lakh crore
- Current debt (September 2024): ₹3.9 lakh crore
- Expected debt limit (2024-25): ₹64,000 crore
