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The Centre today offered the West Bengal Government fresh borrowing window worth over Rs 6,100 crore.
According to the Chief Minister, Ms Mamata Banerjee, this would help the Government mitigate the fund crisis for four-five months.
In addition, the Union Government has also approved of an additional Plan assistance of Rs 9,240 crore to help the State Government take up new development projects.
Special purpose funds to the tune of Rs 494 crore were also allotted for promotion of green energy (Rs 100 crore), agriculture development (Rs 300 crore), and development in left-wing extremism (LWE) affected areas (Rs 94 crore).
According to sources, West Bengal faces a monthly cash shortfall of approximately Rs 1,500 crore primarily to mitigate committed expenses such as salary and wages and interest payment.
The shortfall is bridged through loans.
“This is not a package. Apart from the additional (Plan) assistance of Rs 9,240 crore, we are offered fresh borrowing window. This will be sufficient to meet ends for four-five months,” Ms Banerjee told newspersons.
“However, we are thankful to the Prime Minister, Dr Manmohan Singh, and the Finance Minister, Mr Pranab Mukherjee, for whatever assistance they could extend at this juncture,” she said, adding that her Government would bring Budget proposals for additional resource generation.
Elaborating on the loan window created by the Centre, she said that against a cap of Rs 17,828 crore under Fiscal Responsibility and Budget Management (FRBM) Act, her government is “now allowed to withdraw an additional Rs 2,706 crore. In addition, the State is allowed to raise Rs 3,432 crore loan against future re-payments.”
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