Kolkata: Denied of any assistance from the Centre, Chief Minister finally decided to take loan from the market to help West Bengal recuperate from the financial mess.

With no help coming from any quarter, the debt-ridden state is now forced to make amends by taking more loan. Mamata had earlier pressurized the Centre from all sides for financial assistance. She had even threatened to pull out of the alliance, but all the efforts went in vain.

Finally, the state government through Reserve Bank of India’s Indian Brand bidding system has collected Rs 1,000 crore as a loan for 10 years. The amount will be used for the development of the state.

According to RBI’s sources, the state has agreed to pay off the loan at 9.28 percent interest.

Notably, the financial condition of the state is in such shamble that it is even facing difficulties in paying wages and pension. Moreover, in order to pay of the outstanding bills of November 2010, the state government had decided to take a loan of Rs 3,000 crore from the market.

Significantly, West Bengal is far behind implementing the Fiscal Responsibility and Budget Management (FRBM) Act. However, it has the limit of collecting Rs 17, 828 crore from the market in the current fiscal.
According to State Finance Minister Amit Mishra, the Left government has left a burden of Rs 3,000 crore as outstanding bills that has to be paid off. For this reason, the present government is left with a limit of only Rs 9,616 crore in 10 months to collect the amount.

Earlier, the Chief Minister has apprised Union Finance Minister Pranab Mukherjee of the situation. In addition to FRBM limit, the state government had also asked the Finance Minister for an addition loan limit of Rs 2,706 crore.

The state government suffered a major setback as the Ministry gave its nod for the alteration in the National Small Savings Fund (NSSF) which brought the minimum participation of the state government from 80 percent to 50 percent in the funds.