(a) whether some State Governments including Orissa have sought financial assistance
from the Debt Relief Fund, during the last three years;
(b) if so, the details thereof; and
(c) the action taken by the Government thereon so far?
(a) whether some State Governments including Orissa have sought financial assistance
from the Debt Relief Fund, during the last three years;
(b) if so, the details thereof; and
(c) the action taken by the Government thereon so far?
Minister of State in the Ministry of Finance(SHRI NAMO NARAIN MEENA)
(a) to (c) : No Debt Relief Fund exists to provide financial assistance to States.
However, the Twelfth Finance Commission had recommended a Debt Consolidation and Relief
Facility (DCRF) for its award period (2005 to 2010). DCRF provided for (i) Consolidation
of central loans from Ministry of Finance contracted till 31.3.2004 and outstanding as on
31.3.2005 for a fresh tenure of twenty years at an interest rate of 7.5% per annum and
(ii) Debt waiver to States based on their fiscal performance. Loans from Ministry of Finance
to 26 States that had enacted their Fiscal Responsibility and Budget Management Acts, have
been consolidated and debt waiver amounting to Rs.19,963.66 crore has been provided to eligible
states, including Orissa.
Debt waiver of Rs.381.90 crore has been allowed to Orissa for each of the years 2007-08 and
2008-09. Orissa’s eligibility for debt waiver for 2009-10 can be assessed upon receipt of
its Finance Accounts for that year.