Financial Relief Before Diwali
Good news for the government employees of Madhya Pradesh, the Chief Minister of the state Dr. Mohan Yadav’s government is likely to grant enhanced Dearness Allowance (DA) to around 7 lakh employees. This is in view of a recent financial injection from the central government, which has released ₹14,000 crore for the state before the festive season.
Central Government’s Windfall
The allocated amount is a timely present for the central Government for Madhya Pradesh against the state’s constrained financial situation. In the central budget presented in July, Madhya Pradesh has been receiving ₹97,906 crore in portions where ₹7,000 crore has been provided in a month. However, two installments of ₹14,000 crore have been disbursed in October to help the state financially during a tough time.
Reducing the Need for Debt
In this sense, the ₹14,000 crore infusion would mean that the Madhya Pradesh government will not have to borrow any more money this month. Earlier, the state aimed to take ₹6,000 crore loan, but this unplanned fund aiding the government in its resource mobilization without the need to borrow. Leaders have noted that the timing of this allocation is proper since the state can use the funds urgently.
Rising Debt Concerns
Still, this is cheery news for the Madhya Pradesh government and businesses alike, though the state has been faced with a rising debt liablity, with its total debt now stood at ₹4 lakh crore. Even this financial year, the state has prepared a borrowing of ₹20,000 crore including some recent borrowing of 5000 crore each.
The raised DA that should be posted to the employees’ accounts shortly, means additional income to the employees as well as a right step to stimulate the state’s current economic performance during the holiday season
