ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A
Something Other Than Debt Relief

Refinancing West Bengal

With a debt burden at around 37% of the state gross domestic product, which is almost twice the average of other states, West Bengal's finances are in a precarious situation. The primary reason for this is the state's inability to realise its own revenue potential - West Bengal's own tax revenue to state domestic product ratio is the lowest among all Indian states. The state also uses borrowings to finance its non-plan expenditure. The state government now wants the centre to restructure its debt and suspend its interest payments for three years. Analysing different scenarios, this paper evaluates whether such a relief package is necessary, or even the best way of avoiding a debt trap.



Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

649for India

$20for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top