States likely to step up borrowing in 4th quarter for social expenditures

Almost all states have raised much more debt than at the same time last year, except Maharashtra.

Despite the lower availability of money from goods and services tax this year, key states have not significantly lowered their spending on social sector expenditure. In financial year 2019-20, when the growth rate of the Indian economy has come off the highs, this data is comfortable news for the poor. Millions of them depend on the spending by the states through various schemes as crucial income support. Any cut back here could have disastrous impact on their lives.
 
But for the markets, this could mean a rise in borrowings by the states in the last quarter of the year.