Replying to a question of MLA Sheikh Noorul Hassan the chief minister who is incharge of Finance department stated stated about 75% of the total borrowing of the State is Open Market Borrowing(OMB). The above is inclusive of 50 year interest free loan from Government of India for Capital Expenditure/ Investment from FY 2020-21.
The total liability of the State government till the financial year 2024-25 as on 31st March 2024 is Rs. 16,988 crore. The total amount of interest paid by the State government on its borrowings on a monthly basis State Government interest payment on a monthly basis is not fixed. It fluctuates from month-to-month during a financial year.
He added that during the financial year 2023-24, the State is estimated to pay interest of Rs. 946 crores on the loans taken. During 2022-23, an amount of Rs. 874 crores. For 2021-22, an amount of Rs. 690 crore was paid as interest on borrowings raised by the State Government
The key indicators of the State’s financial health as monitored by the Finance Department and the current credit ratings of the State along with its implications on the State’s borrowing cost and financial reputation. Currently, no credit rating of the State has been done. In fact, credit rating of no Indian State is done as far as the knowledge of State Finance Department is concerned. Borrowing rate of the State is in the normal range applicable to other Indian States.
The mechanism employed for effective management of public debt, The Fiscal Responsibility and Budgetary Management Act, serves as an anchor for the State Government in managing debt, the borrowings of the State Government are also monitored by the Government of India under Article 293 of the Constitution, State government closely monitors public debt of the State keeping in view the overall outstanding fiscal liabilities, repayment capacity, fund requirements for developmental purposes and fulfilling other committed liabilities of the State, the detailed information on the State contingent liabilities and its potential risks? (i) As on 31.03.2023, outstanding guarantees given by the State is Rs.1293.98 crore. Biren said that these guarantees are given as per the requirements under the Manipur Ceiling on Government Guarantees Act, 2004. Most of these guarantees are given budgetary support for repayment of their liabilities by the State government. Further investment is made by the State in the Guarantee Redemption Fund (which is managed by the Reserve Bank of India) to meet any exigencies. Till date no claim has been raised from this fund. There is negligible potential risk to State’s financial stability due to contingent liabilities.