Shillong, Sep 9: Dr. Mukul Sangma, Leader of the Opposition and Meghalaya TMC Parliamentary Party leader, raised serious concerns regarding the recent Comptroller and Auditor General (CAG) report tabled in the Meghalaya Assembly. Addressing the media in Shillong, Dr. Sangma described the report as a “red flag,” emphasizing that 56% of the state’s total resources are being used for servicing the prepayment of loans and interest, indicating that the state government is borrowing heavily to repay previous debts.
Talking to Mediapersons in Shillong, Dr Sangma highlighted the sanctity of the CAG and stated that accountability should be ensured for the misuse of funds, as revealed in the report. Dr. Sangma criticized the state government for trying to evade responsibility and divert the public narrative, expressing disappointment at the attempts of the state Government to deny the findings.
“Out of the total borrowing for that year, only 44% was used on the capital expenditure, meaning the remaining 56% was used elsewhere. 56 percent out of the total boring was utilised to service the repayment of principal and interest payment of earlier borrowings,” Dr. Sangma emphasized.
The opposition leader condemned the NPP-led government for increasing its borrowing limits to service existing debts, stating that this policy would drive the state toward a fiscal catastrophe.
“You are borrowing more just to repay the principal and interest. This is where the government is misleading the people,” Sangma remarked. “This approach, as flagged by the CAG, is setting up the state for a disastrous future. It is a red flag.”
He likened the situation to personal finances, explaining, “Imagine you owe an EMI of ₹75,000, but your income is only ₹50,000. How do you pay? You borrow again, not to grow but to repay old loans. This is what’s happening here – the state is borrowing to repay previous debts, which only deepens the financial crisis.”
Dr. Sangma further accused the state government of adopting a “well-scripted modus operandi” to deviate from fiscal responsibility. He pointed out multiple irregularities, including issues related to coal mining and illegal appointments.
“The government has violated the fiscal deficit targets and the debt-to-GSDP ratio, which reflect a lack of sincerity in ensuring fiscal discipline,” he charged. “They even amended the Meghalaya Fiscal Responsibility and Budget Management (MFRBM) Act, 2006, to allow for further borrowing, but fiscal discipline remains paramount.”
He criticized the state’s deviation from fiscal targets, stating, “In 2018-19, the fiscal deficit target was set at 3.25%, but it actually reached 6.3%. By 2019-20, it had crossed 4%, whereas during our administration, it never exceeded 3%.”
Dr. Sangma concluded his remarks by highlighting the state’s debt-to-GSDP ratio, which has consistently been set at 28% over the years, while the fiscal deficit continues to fluctuate wildly.
“This inconsistency in fiscal targets clearly shows a lack of comprehensive understanding and proper fiscal management. The government needs to address these issues with urgency,” he said.
With mounting concerns over the state’s financial future, Dr. Sangma called for strict adherence to fiscal responsibility and a return to sound financial policies.