After the second consecutive win in West Bengal, Chief Minister Mamata Banerjee and her finance minister Amit Mitra will have to deal with a legacy problem.
The second term of the maverick leader who trounced the opposition with a thumping majority comes at a time when the state of West Bengal is facing an unprecedented debt burden.
Mamata Banerjee has an uphill task to take state’s economy on the growth path and attract investments to spur industrial growth.
According to budget estimates presented in the state assembly by Finance Minister Amit Mitra, the debt stands at Rs 3.34 lakh crore.
When Mamata Banerjee took charge five years back the total deb burden of state stood at about Rs 2 lakh crore, an increase of around Rs. 1.34 lakh crore during the tenure of Mamata’s first government.
The debt burden will constrain Mamata’s public expenditure this time. High debt burden will also restrict the state government’s ability to borrow and spend on infrastructure project.