The State government has not recovered outstanding loans of ₹10,389.78 crore given to its eight departments and undertakings, which included borrowings since 1977, said the Comptroller & Auditor General (CAG) report.
The CAG report on Finance Accounts for the 2022-23 fiscal was tabled in the Legislative Assembly on Tuesday.
“In respect of old loans amounting to ₹10,389.78 crore involving eight departments (21 loanee entities), recoveries of principal have not been effected during the past several years, which includes loans pending since the year 1977,” the CAG said.
The 21 loanee entities, most of them State-owned undertakings, have arrears of ₹15,856 crore, which includes principal of ₹9,380 crore.
Oldest pending loan
The oldest arrears are from 1977 pertaining to loans given to the BWSSB and Karnataka State Seeds Corporation Ltd., the Electro Mobile India Ltd., and Karnataka State Tourism Development Corporation.
Further, the terms and conditions of repayment of loans have not been settled for the 28 statutory bodies or other entities loans amounting to ₹1,462.01 crore as on March 31, 2023.
Borrowing profile
It said in recent years, the borrowing profile of the State has shown an increasing trend towards more reliance on open market borrowings. The outstanding market borrowings of the year (2022-23) worked out to 62.92% of the gross public debt and other liabilities. The government has raised market loans of ₹36,000 crore.
