Hyderabad, February 21: Each of the about 8.3 crore citizens of the State will carry a debt in excess of Rs.14,000 by the end of the next financial year.
This per capita debt was indicated by the steep hike in the quantum of loans proposed to be availed by the government during financial year 2010-11.
Open markets
Against the existing public debt of Rs. 1,09,757 crore, the State government proposes to raise another Rs. 13,073 crore next year, raising the total debt burden to a staggering Rs. 1,22,830 crore.
A major portion of the proposed loan would be mobilised through open market while the government will cut down on loans from autonomous bodies.
Expenditure
The proposal for mobilising more debt comes in the light of the expenditure being incurred by the State government on debt servicing.
The government is likely to incur an expenditure close to Rs. 20,000 crore on servicing the existing debt during 2010-11 with interest payment accounting to Rs. 10,196 crore and loan repayment Rs. 9,733 crore.
The public debt as percentage of the GSDP is expected to be around 28.11 per cent at the end of the fiscal.
—Agencies