5 states allowed to borrow Rs.99.1 bln through open market borrowing

by Nidhi Bhati

The government accorded approval to five states to raise Rs.99.1 billion in additional market borrowings for implementing the one-nation-one-ration-card system, one of the four reform conditions identified for availing additional borrowing window of up to two per cent of gross state domestic product (GSDP) in 2020-21. In May 2020, the Centre had allowed additional borrowing limit of up to Rs.4.3 trillion (two per cent of GSDP) to states for 2020-21. One percentage point of this is subject to implementation of four specific state level reforms, where weightage of each reform is 0.25 per cent of GSDP. The remaining additional borrowing limit of one percentage point was to be released in two instalments of 0.5 per cent each. State wise details of the additional borrowing permission are as follows:

State Amount (Rs. billion)
Andhra Pradesh 25.3
Telangana 25.1
Karnataka 45.1
Goa 2.2
Tripura 1.5

References
1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1658681