Madhya Pradesh Seeks Rs 2,000 Crore Loan Amid Rs 4 Lakh Crore Debt: BJP Faces Financial Challenges

Madhya Pradesh: In a clear sign of financial strain, Madhya Pradesh Chief Minister Mohan Yadav has approached the Reserve Bank of India (RBI) for a ₹2,000 crore loan, less than two weeks after assuming office. This move underscores the precarious financial situation inherited from the previous government, as the BJP endeavors to fulfill its election promises despite a staggering debt mountain of nearly ₹4 lakh crore.

Madhya Pradesh Seeks Rs 2,000 Crore Loan Amid Rs 4 Lakh Crore Debt

Madhya Pradesh Seeks Rs 2,000 Crore Loan Amid Rs 4 Lakh Crore Debt. The debt burden was passed on to Mr. Yadav from former Chief Minister Shivraj Singh Chouhan, whose ambitious welfare schemes, including Ladli Behna, contributed to the BJP’s electoral success but came at a substantial cost. The Chouhan government borrowed ₹44,000 crore in 2023 alone, including ₹5,000 crore during the poll code period. With the state coffers nearly depleted, the new government is grappling with the challenge of meeting its extensive list of commitments.

Chief Minister Yadav, however, sought to allay concerns in the Assembly, asserting that there is “no crisis,” and no welfare schemes will be halted due to financial constraints. He emphasized the continuity of previous government schemes, comparing the BJP manifesto to revered texts like Ramayana and Gita.

BJP Faces Financial Challenges in MP

BJP Faces Financial Challenges in MP. The Opposition Congress, however, remains skeptical, with spokesperson Abbas Hafeez criticizing the BJP for pushing Madhya Pradesh towards bankruptcy. Hafeez argued that every citizen in the state is now burdened with debt, and the BJP needs to understand the gravity of the situation.

Deputy Chief Minister Jagdish Devda defended the need for borrowing, stating that funds would be used for essential development projects like road construction and irrigation. He urged the Congress to reflect on its defeat rather than targeting the government over its financial challenges, alleging that previous Congress administrations misappropriated borrowed funds without contributing to development.