CM Mamta Banerjee No Money to pay debt interest demands 3 Years Interest moratorium from Government

CM Mamta Banerjee No Money to pay debt interest demands 3 Years
Interest moratorium from Government

West Bengal government, chief minister Mamata Banerjee on Saturday
Said that we have not enough income to pay the interest for the debt burden bequeathed by the erstwhile (Left Front) government

We are repeatedly urging (the central government) that we do not need its mercy, but that it should provide us at least a three-year interest moratorium. They should give us the moratorium as we are unable to pay it,"

"I will certainly not tolerate it," the chief minister warned and gave the Congress-led United Progressive Alliance (UPA) government 15 days to decide on the interest freeze for three years.

After 15 days what she will do is not clear?

Will she declare that she do not support UPA 2 Government?

How much is the debt burden of West Bengal State Government?
More than the estimated Rs 2.3 lakh Crore. The state government's current annual outgo on interest payments is around Rs 2,200 Crore.

Meaning of moratorium –

1. An authorization to a debtor, such as a bank or nation, permitting temporary suspension of payments.

2. An authorized period of delay in the performance of an obligation.

3. a legally authorized postponement of the fulfilment of an obligation

Do you think government should give the 3 years moratorium?

No, Government should not give any type of moratorium.
Government should set up the team of RBI officers who should study the State government expenses.
They should prepare a cost, expenses cutting list, this means they should suggest the methods how government should save money.
Examples

1. giving advertisement of Happy Birthday using state funds

2. Building statue with state funds.

3. Going abroad for fun on the name of study tours

Like this all unnecessary expenses should be curtailed stopped.

If now government bows and gives 3 years period, then this is India 3 years will become 30 and then the demand will rise government should forever forget about collecting debt of the state.

Suggested Reading –

Know 50 Health Benefits of Amla Know Everything about Amla fruit

http://realityviews.blogspot.in/2011/10/know-50-health-benefits-of-amla-know.html

Reality views by sm –

Saturday, April 21, 2012

Tags - West Bengal Debt Mamta Banerjee