MP Govt Plans ₹5,200-Cr Loan Ahead of Foundation Day
With 20th borrowing under CM Mohan Yadav, Madhya Pradesh’s debt burden set to rise to ₹4.64 lakh crore amid fund crunch.
GG News Bureau
Bhopal, 28th Oct: Just days before Madhya Pradesh’s Foundation Day on November 1, the state government led by Chief Minister Dr Mohan Yadav is preparing to take a fresh ₹5,200-crore loan. This marks the government’s 20th borrowing since taking office and will raise the total state debt to ₹4.64 lakh crore.
Officials said the loan will be taken in two instalments — ₹2,700 crore in the first phase and ₹2,500 crore in the second — to meet expenses related to the Foundation Day celebrations, Ladli Behna Yojana instalments, and other welfare schemes. The move comes amid increasing fiscal pressure and delayed payments across departments.
With this, Madhya Pradesh’s total borrowings in the current financial year will reach ₹42,600 crore — the highest in recent memory.
The government’s liquidity crunch was visible during the Bhai Dooj event at the Chief Minister’s residence, when thousands of Ladli Behna beneficiaries returned disappointed after the promised ₹250 festival transfer was not credited.
Chief Minister Yadav assured beneficiaries that pending dues will be paid next month, along with the revised monthly instalment of ₹1,500 (up from ₹1,250).
“From November onwards, every sister in Madhya Pradesh will receive ₹1,500 per month,” he said.
Finance Department sources admitted that the ₹250 festival instalment was delayed due to liquidity issues. The government had initially planned to release ₹1,500 to 1.26 crore women before October 15, but the plan was deferred multiple times.
Since June 2023, Ladli Behna Yojana has disbursed over ₹45,000 crore through 29 instalments. The ₹250 hike will add around ₹300 crore to the state’s monthly spending, further tightening its fiscal situation.
