Andhra Pradesh second highest borrower after West Bengal
Data from Reserve Bank of India shows, that after the next round of marketing borrowing by state governments through a Reserve Bank of India window, the total borrowing of Andhra Pradesh through state development loan (SDL), this financial years so far would be Rs 11,500 crore, against Rs 12,000 crore by West Bengal so far.
Five state governments-- Andhra Pradesh, Bihar, Goa, Karnataka, Meghalaya, Punjab and Tamil Nadu will raise Rs 4,300.00 crore as state development loans through Reserve Bank of India on November 6. West Bengal has decided to abstain from the next round of borrowing.
After Andhra Pradesh, Tamil Nadu and Gujarat, are the states with high borrowing, with SDL so far at Rs 10,400 crore and Rs 10,300 crore.
According to projection by RBI, the total quantum of borrowing by state governments and Union Territtory of Punducherry for the quarter October-December 2012 will be in the range of Rs 55,000-60,000 crore.
In the last round of auction of SDL on October 23, Andhra Pradesh raised Rs 750 crore at a cut off yield of 8.80 per cent. Last time also, West Bengal had abstained from raising further money through SDL. However, the cut off yield at which West Bengal had raised loans last, which was on October 16, was higher at 8.90 per cent.
A high cut-off yield, or the yield at which or below which the bids are accepted, indicates lower credit rating for the security.
West Bengal availed of relaxation of the Fiscal Responsibility and Budget Management Act twice, pushing the borrowing of the state to Rs 22,423 crore.
West Bengal's debt burden of according to the last Budget document was Rs 2.08 lakh crore. The outstanding debt of the government is set to increase to Rs 2.26 lakh crore in the present fiscal, making it one of the most indebted state in terms of tax to GSDP ratio.
Reserve Bank of India today said it there is no need to explain the monetary policy and it stands by monetary policy statement.
While some obsolete Acts pointed to by the panel were introduced in 1842, some came into being in 2013