Centre allows addl Rs16,691 cr borrowing for 7 states on meeting capex goal

FM to meet state CMs on Monday to push investment-led growth

The Union government has allowed seven states to additionally borrow Rs 16,691 crore on meeting capital expenditure targets for the first half of this fiscal year, Finance Secretary TV Somanathan said.

Chhattisgarh, Kerala, Madhya Pradesh, Meghalaya, Punjab, Rajasthan, and Telangana have achieved the target of 45 per cent of the total capital for FY22 up to July-September.

Out of the net borrowing cap of 4 per cent of Gross State Development Product (GSDP) for 2021-22, borrowings up to 0.50 per cent of GSDP were earmarked for incremental capital expenditure. A capex target of Rs 5.79 trillion has been set for all states,