Panaji: Leader of Opposition in Goa Assembly Pratapsingh Rane today cautioned the state government of facing "West Bengal-like financial crisis" considering the escalating borrowings from the open market at higher rates.
"Once we reach a certain level of borrowing, we might reach a stage like West Bengal," Rane told the state Legislative Assembly today participating in the general discussion on the budget for 2013-14.
"Today, finance minister of WB finds it very difficult to take up any scheme which reflects in the performance of the government," he added.
Referring to various market borrowings by the state government in recent past, Rane said Goa is heading towards a debt-trap.
There have been heavy borrowings resulting in the increase in the interest liabilities. "The interest payment was Rs 212 crore for 2011-12, Rs 248 crore for 2012-13 and Rs 309 crore for 2013-14," he said, in his 20 minute speech on the floor of the House, in the afternoon session.
The money loaned from the market has a whopping interest of 17-25 per cent, he said cautioning that "the burden of interest payment will become difficult as we go on borrowing more."