States can borrow Rs 3.2 trillion in April-Dec after discussions with RBI

The Centre has allowed states to borrow 50 per cent of their 2020-21 combined borrowing limit in April-December, according to a finance ministry letter to the Reserve Bank of India (RBI).
 

The letter was put up on the expenditure department’s website on Tuesday.
 

The amount that the states have been given permission to raise through open market borrowings is a little more than Rs 3.2 trillion. “It has been decided to accord consent to the state governments to raise open market borrowing on the basis of 50 per cent of the net borrowing ceiling fixed for 2020-21. The consent is