Thiruvananthapuram: The state government’s public debt will cross Rs 3.9 lakh crore within the next 3 years. The budget document presented in the assembly on Friday revealed this. But the growth of debt will fall by 2 percent and touch 35 percent of the GDP.

The documents also pointed out that the second wave of the pandemic triggered a loss of Rs 1.65 lakh crore in the GDP of the state.

The government examined that all sectors in the economy will be active after completing the vaccination process amid the COVID crisis.

In the current fiscal year, though the state aims at GDP growth of 6.6 percent, it will increase by 12.5 percent after the COVID crisis, noted the budget.

Hence, the public debt which will touch Rs 3,27,000 crore in the current fiscal year will be increased to Rs 3,57,000 crore in 2022-23 and Rs 3,90,000 crore in 2023-24.

The state government hopes that the public debt which is 37 percent of the GDP in the current year will drop to 35 percent. 

Though the finance department has decided to continue development and welfare projects by taking loans, the state should be successful in countering COVID and boost up the economy to yield good results. If not, the public debt will cross Rs 4 lakh crore in the third year. Apart from this, GDP also will be dropped.

The state was successful to keep the GDP at Rs 1,56,000 crore with the rejuvenation package of Rs 20,000 crore, revealed the budget document.