Chhattisgarh pushes for easing terms attached to hike in state borrowings

Says Centre's economic package is not enough, and states are also finding it diffcult to raise additional resources given the stringent conditions

Asserting that the economic package announced by the Centre is insufficient to revive the economy, Chhattisgarh had demanded easing the conditions imposed on state borrowings.

The Centre last month allowed the states to increase their borrowing limits from three per cent of their GSDPs to five per cent on fulfillment of certain conditions. “The states are unable to avail the benefit of additional borrowing limit due to non-fulfillment of conditions and norms,” Chief Minister Bhupesh Baghel wrote to Union Finance Minister Nirmala Sitharaman.

The states should be allowed to avail the additional borrowing limit of two per cent without any conditions, he