Madhya Pradesh Government Fund Crisis | 18 Jan 2024

Why in News?

Madhya Pradesh government has put 370 schemes on hold due to the fund crisis. This includes schemes concerning schools, IT industry, farm loans, metro rail and Pradhan Mantri Sadak Yojana.

Key Points

• Officials have stated that none of the projects have been closed, but the funds are being held securely. Additionally, approval from the finance department is required before withdrawing funds for any schemes.
• The new government inherited a debt of Rs 3.5 lakh crore, and in less than a month, it has taken a fresh loan of Rs 2,000 crore.
• In the first supplementary budget of Rs 26,816.6 crore passed in the assembly in July 2023, Rs 762 crore was set aside to pay the interest of the new market loans taken by the government. The second supplementary budget will be passed in the assembly.
• Among the major financial responsibilities of the government is the Ladli Behna scheme, which needs nearly Rs 1,600 crore every month.