The government of Madhya Pradesh is poised to issue another loan of 5200 crore as the second loan of the year 2026. Under this new injection of borrowing, the amount of debt that the state borrowed in the current financial year will increase tremendously to 62,300 crores as compared to before which was 57,100 crores.
As per state government specifications, the ₹5,200 crore loan will be received by the state government on February 7. The borrowing has been modelled in three tranches with different tenures of repayment. The initial tranche of 1200 crore will be borrowed at a term of seven years which will be repaid with interest by February 4, 2033. The two tranches that will be 2,000 crore will have a more extended period of repayment of 17 years and are set to be repaid by February 4, 2043. The 3 rd tranche and the 3 rd tranche 2000 crore will be repaid within 22 years with interest.
This is an increment to the 57,100 crore that the Madhya Pradesh government has already increased during the current financial year. When the new loan is obtained, the total loan to be borrowed in the year will be 62,300 crore.
The loans are being increased to suit the financial needs of the state and its developmental obligations, according to the officials. Nevertheless, the increasing debt is likely to attract attention to the state fiscal management and repayment in the next few years. The government is supposed to give the strategy that it would use in controlling the larger debt and still fund the infrastructural projects, the welfare schemes and other development programs throughout the Madhya Pradesh state.
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