India, March 4 -- With the state government reeling under fund crunch and mounting debt burden, various government departments have started exploring options to raise money beyond resources allocated in the state budget.

The forest department, among them, is planning to monetise its teakwood property to avail a Rs.6,000-crore loan, while the water supply department is looking to raise Rs.15,000 crore from from the Housing and Urban Development Corporation (HUDCO) and the public works department is clearing pending dues of road and infrastructure contractors with a 4% cut via the Trade Receivables Electronic Discounting System (TReDS).

Pressure mounted on state finances in 2024, when the previous Mahayuti government announced a slew of s...