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Monday, March 21, 2016

Top 10 Defaulters of India

Comments on the NPA Issue



This Public sector bank NPA issue has a potential to unfold into a full fledged scam. This issue could potentially sink the hopes of the Citizens of India The amount of NPA is almost 6 lakh crore, perhaps more. This amount is staggering, more than any scams of the UPA government. There are about 678 districts in India. Think about each district receiving 1,000 crore to open schools, colleges, engineering and medical colleges. This is also a present day cash that has been stolen from people's pocket. Coal scam numbers were based on future 30 years worth of losses. But the 6 lac crore loss is real, in today's money. Who's money was it to start with? It was the money of average citizen. If you deposited 1,000 rupee in SBI, about 900 rupee was loaned out by SBI to these looters.

Where did the money go? Most of this money has been looted and sent out of the country by the nexus of the corrupt bankers, politicians and the crony industrialists. Each party has received their share and parked the money in safe heavens. Can they recover the money? NO. These loans were made to limited liability companies with limited personal collateral from the crony industrialists. Banks would not lend rupee 20,000 for an education loan to an average citizen but they lent thousands of crore without any personal collateral. Who is responsible?

THE NPA MESS SEG 1

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Debt not bad if economic growth follows

Debt not bad if economic growth follows
Debt, per se, is not bad, if the state’s economic growth can sustain and service it. So, the key matrix to check is the debt as a percentage of the state’s gross domestic product (GSDP) or total economic output.

West Bengal, Punjab and Uttar Pradesh have the highest debt-to-GSDP ratios.

The good news over the past five years is that the debt-to-GSDP ratio for all the states has come down from 25.5% to 21.2%.

In West Bengal, despite the increase in outstanding liabilities, the debt-to-GSDP ratio has declined, which means the state’s GDP is growing at a fast clip.

That cannot be said for Andhra Pradesh. The state has seen a 78% increase in outstanding liabilities but its debt-to-GSDP ratio is constant at 25%. The debt-to-GSDP ratio was lowest in 2012 at 22.5%.

Maharashtra has the highest outstanding liabilities but does not feature among the top 10 states with high debt-to-GSDP ratio. The debt-to-GSDP ratio for Maharashtra at 20.2% is lower than the national average of 21.2%.

Similarly, although Tamil Nadu is fast adding debt, its debt-to-GSDP ratio at 20% is lower than the national average. This shows that the state’s GSDP is growing despite the high growth in debt.

source of this information

State Debts

Government debt and fiscal policy in India II (BSE)

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