West Bengal govt begins payment of arrears

The new West Bengal govt, saddled with a bill payment arrear of Rs 3,500 crore in addition to a debt burden of Rs 2,03,500 crore by the erstwhile Left Front regime, withdrew the embargo on payment of bills from the treasury.

Last Updated: Jun 01, 2011, 17:28 PM IST

Kolkata: The new West Bengal government,
saddled with a bill payment arrear of Rs 3,500 crore in
addition to a debt burden of Rs 2,03,500 crore by the
erstwhile Left Front regime, on Wednesday withdrew the embargo on
payment of bills from the treasury.
"We have started making payments of bills from the
treasury from today," Finance Minister Amit Mitra said after
withdrawal of the embargo imposed by the Left Front government
since November last year.

The state government as an interim measure would raise
Rs 3,000 crore from market borrowings and Rs 500 crore as loan
from small savings, Mitra told reporters at the state
secretariat.
The state government will work with the Centre to
draw up a financial package for West Bengal shortly, he said.

PTI