Bhopal: Madhya Pradesh has a debt of Rs 95,000 crore and it is likely to touch Rs 1 lakh crore by the end of the current financial year, State Finance Minister Jayant Mallaiya said here Thursday.
He, however, added that state's financial situation is good.
"In 2003-04, Madhya Pradesh has a debt burden of Rs 35,000 crore and now it has reached Rs 95,000 crore. By the end of this financial year it is expected to be Rs 1 lakh crore," he told reporters.
During 2003-2014, though the state borrowed Rs 60,000 crore, it spent Rs 1.20 lakh crore on construction of roads, canals, dams, power generation, drinking water and hospital buildings, among other things, he said.
About increase in VAT on petrol and diesel despite the Centre reducing the fuel prices, the minister said situation in every state was not same, and even Rajasthan had increased the VAT while Gujarat was contemplating a hike too.
On Goods and Services Tax (GST), the minister said the Union Finance Minister Arun Jaitley had assured that after its implementation, if there was a shortfall in the state's revenue the Centre would compensate it.
He termed the financial situation of Madhya Pradesh as "quite good", and added that not a single bill was pending for payment.
During the 11th plan (2007-12), the state's economic growth rate was 9.94 percent while in 2013-14 it had already crossed 11.08 percent, he said.
Master plan for 50,982 villages had already been prepared by taking into account local populations' priorities, he said.
Mallaiya, who also handles water resources ministry, said since BJP came to power, construction of 1,600 small, 13 medium and five mega irrigation schemes was completed.
