You are here: Home » Economy & Policy » News
Business Standard

Bengal's borrowing rises 4% to Rs 49,000 crore till Feb amid pandemic

The market borrowing by West Bengal in the 11 months of the current fiscal rose by four per cent

West Bengal | Market borrowings

Press Trust of India  |  Kolkata 

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
Representational image

The market borrowing by in the 11 months of the current fiscal rose by four per cent at Rs 49,000 crore amid the COVID-19 pandemic, latest available data showed.

The latest RBI data collated by Care Ratings shows that 28 states and two union territories collectively borrowed Rs 7.12 lakh crore so far in the current financial year, which is over 30 per cent higher than what these states and union territories borrowed last year.

The Finance department officials claimed that borrowings rose by only four per cent because of better financial management in difficult times by prioritising expenses and improvement in revenue with gradual unlocking.

Some states like Madhya Pradesh borrowed higher by 112 per cent, Jharkhand by 113 per cent and Sikkim 108 per cent.

Other states which reported jump in are Rajasthan (57 per cent), Maharashtra (54 per cent), Karnataka (43 per cent), Tamil Nadu (37 per cent), Telangana (36 per cent) and Andhra Pradesh (28 per cent).

However, five states borrowed less than last year. These include Odisha (by 45 per cent), Tripura (by 27 per cent), Manipur (15 per cent), Arunachal Pradesh (14 per cent less) and Gujarat (6 per cent less).

The states mostly borrow RBI managed State Development Loans (SDL) which are debt issues by the state governments to fund their fiscal deficit.

in November last year agreed with the Rs 1.1 lakh crore borrowing "option" offered by the Centre to meet the shortfall in goods and services tax (GST) compensation, but has asked the Centre to borrow the remaining shortfall of Rs 72,000 crore till January 2021, as well.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, March 03 2021. 20:24 IST