Chhattisgarh: Public Debt composition- Internal and External Debt including World Bank loans, Institutional and non institutional sources of Rural Credit in Chhattisgarh
The State Government manages public-debt through two sources-
- Internal Loan and
- Loan and Advance from Central Government. The Chhattisgarh Government Manages internal loan through following sources:
The percentage share of Internal Loan of State Government has increased from 65.73 percent in the year 2001-02 to 95.44 percent in the year 2005-06 and after that it has declined to 54.33 percent in the year 2007-08, again it has increased to 89.81 percent in the year 2009-10 respectively. on the contrary, the percentage of Loans & Advances from Central Government has declined from 34.27 percent in the year 2001-02 to 4.56 percent in the year 2005-06. It has jumped to 45.67 percent in the year 2007-08 and after that it has declined to 10.19 percent in the year 2009-10 respectively. The basic cause of using the low percentage of Internal loan in the years 2006-07 & 2007- 08 us the full control on market borrowings. The State Government has not borrowed loans from the market and only financial institutions loans are used for financing. The plan expenditure of the State; but for the last two years market borrowing is again used for financing the plan expenditure of the State Government so it has jumped to 87.74 & 89.81 percent in the year 2008-09 & 2009-10 respectively.
Under Internal Loan of State Government, the percentage share of Market Borrowing has increased from 27.03 percent in the year 2001-02 to 53.25 percent in the year 2009-10. The contribution of National Small Saving Fund has increased from 32.92 percent in the year 2001-02 to 81.66 percent in the year 2006-07 but after that has declined to I 0.65 percent in the year 2009-10 respectively. Loans from NABARD and NSSF have also contributed the internal loans of the State Government.
Public Debt of the Chhattisgarh State is also shown as percentage of Gross State Domestic Product of the State. Table 6.4 reveals that the percentages of Internal Loan has increased initially from 2.21 percent of Gross State Domestic Product in the year 2001-02 to 5.01 percent in the year 2003-04 after that it has sharply declined to 0.21 percent in the year 2007-08. The percentages of Loan & Advances from Central Government has also declined from 1.15 percent of Gross State Domestic Product to 0.18 percent in the year 2007-08 respectively. The percentage of Total Debt to Gross State Domestic Product of the Chhattisgarh Government has also declined from 3.36 percent in the year 2001-02 to 0.38 percent in the year 2007-08 and the percentage of Net Debt to Gross State Domestic Product has become negative in the year 2007-08. lt reveals that the Chhattisgarh Government has properly managed the Public Debt.
Rural credit in chhatishgarh
When small co-operative societies were formed in rural areas long long ago , they became successful and co-operative movement in the country progressed step by step. These co-operative societies, mostly formed on community basis , were mainly artisan co-operative societies ,service co-operative societies ,cottage industry co-operative societies, handloom handicraft societies, marketing co-operative societies ,etc. All these co-operative societies needed finance from outside beyond the share capital raised by them. Therefore co-operative societies on community basis were formed on community basis to meet the credit needs of the community members in the rural areas. This was the beginning of the co-operative credit movement in rural areas. This happened about a century back in our country. These rural credit co-operative societies were the forerunners of the present day rural co-operative banks.
Many of these credit societies expanded their activities, accepting deposits from outside the co-operative society members and termed themselves as Banks. This transformation of the Rural credit societies into Rural co-operative banks took place gradually till the Banking Regulation Act was amended in 1966 bringing all rural co-operative banks under the purview of this Act imposing certain conditions.
Thus the Rural Co-operative Banks were treated as full fledged banks in rural areas with prescribed operational limit. The Rural co-operative banks now plays a vital role to meet the banking ,credit and financial needs of the common and poor people in rural areas. The banks accept deposits from rural people and gives them loans and advances on many scores under different lending schemes. In doing these banking operations they are able to build their own reserve fund and working capital apart from creating their own assets. The Rural co-operative banks carefully consider the credit needs of shareholders and customers and give loans and advances accordingly to the customers and shareholders. The members and customers of the banks get the loans and advances on easy terms. The
common man , small traders ,artisans and needy customers in rural areas are greatly benefited by the Rural co-operative Banks.
Rural co-operative Bank constitutes an important organ of non-agriculture credit sector. It is conceived as small man’s banks, and serves as an important constituent of multi-agency banking system. Recently these banks have recorded an impressive growth after extension of the provisions of the Banking Regulation Act, 1949. The number has increased from 1091 as on the 1st march 1966 to 1346 at the end of June 1967 to Rs.3250 crores as on 30th june 1985. while the advances increased from Rs. 107 crores to Rs. 2600 crores during the period. Thus the rural co-operative banks are striving to fulfill their objectives of improving the economic living of poor artisans, traders, business men and others in rural areas. In Chhattishgarh, about 25 percent people are living in rural and semi-rural areas. The rural co-operative banks are to cater to the need of these people on similar footing as primary co-operative societies to the poor people in rural areas.