Chandigarh, October 18(Press Ki Taquat)
The state government has started strengthening its “sinking fund”, a fund set aside for gradually repaying the debt or replacing a wasted asset. In the past 19 months, the government has created a sinking fund of Rs 7,738 crore.
Today, the government allocated Rs 750 crore to the sinking fund, Finance Minister Harpal Cheema said. He said during the term of the previous Congress government, the sinking fund only had Rs 2,988 crore, which they had enhanced by almost Rs 5,000 crore since they came to power.
The RBI has been stressing the need for all states, especially debt-stressed states, to have a consolidated sinking fund. With the state’s public debt burgeoning at the seams, the creation of this fund gives some fiscal space to the government on short-term fiscal accommodation from the apex regulatory bank. The state’s debt to the GSDP ratio is the highest in the country and is likely to touch Rs 3.47 lakh crore by March 2024.owered By
