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Credit for reform: Centre allows 5 states to borrow Rs 9,913 cr extra

Permission granted on meeting of one-nation-one-ration card reform

Tamil Nadu has borrowed close to a massive Rs 40,000 crore in four-and-a-half months, compared to Rs 17,000 crore last year

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In normal times, the states can borrow to the point that their fiscal deficit does not cross three per cent of their respective gross state domestic product (GSDP).

Indivjal Dhasmana New Delhi

3 min read Last Updated : Sep 25 2020 | 2:11 AM IST

The central government on Thursday allowed five states to raise additional Rs 9,913 crore through open market borrowings (OMBs).

The nod comes as Andhra Pradesh, Telangana, Goa, Karnataka and Tripura implemented the ‘one nation, one ration card’ reform, a condition set by the Centre to enable states to borrow extra.

Karnataka can now borrow additional Rs 4,509 crore, while Andhra Pradesh can raise Rs 2,525 crore, followed by Telangana at Rs 2,508 crore. Goa has been allowed to mop up Rs 223 crore from markets and Tripura Rs 148 crore.

In view of the unprecedented Covid-19 crisis, the Union government had in May

Topics : Coronavirus Centre State borrowing open market borrowings GSDP Finance Ministry GST compensation GST Council

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