Mitra accuses LF govt of serious financial mismanagement
West Bengal Finance Minister Amit Mitra on Tuesday accused the previous Left Front government of gross financial mismanagement putting the state on the brink of insolvency.
Kolkata: West Bengal Finance Minister Amit
Mitra on Tuesday accused the previous Left Front government of
gross financial mismanagement putting the state on the brink
Addressing his maiden news conference after assuming
charge, Mitra said accumulated liabilities from November,
2010, till March, 2011 stood at Rs 3,500 crore as no bills
were paid from the treasury.
"A liability of Rs 3,500 crore has been thrust on the new
government," he said.
Mitra said as an interim measure, the government has
decided to go for market borrowings of Rs 3,000 crore and a Rs
500-crore loan from small savings, adding payment of bills
would start from tomorrow.
"No sovereign government can afford to stop payment of
bills," he said.
Mitra said that going by the records, it had been
observed that the state was maintaining a negative treasury
balance, including overdraft, from November 10, 2010 till
March 09, 2011.
He said that as per RBI data, revenue deficit (RD) of the
state during 2010-11 was Rs 16,441 crore, with revenue
expenditure at Rs 64,014 crore and receipts at Rs 47,571
Even states like Bihar was having a revenue surplus of Rs
6,795 crore. Orissa was next to West Bengal with RD at Rs