Market borrowings by the state government fell by 5.6 per cent in 2017-18 to Rs 3.61 trillion compared with Rs 3.82 trillion in FY17 as the cost of borrowing shot up.
Maharashtra borrowed the most at Rs 425 billion which was six per cent higher than what it borrowed in FY17. Next to Maharashtra was Uttar Pradesh (Rs 386 billion) and Tamil Nadu (Rs 360 billion). A report by CARE Ratings says the cost of borrowings witnessed in FY18 as against the previous fiscal. The average yield on State Development Loans (SDL) stood at 7.6 per cent in FY18, six