Combined market borrowings of 27 state govts, 2 UTs rise 57% in H1FY21

During April-September 2019 (H1FY20), states had raised Rs 2.25 trillion

The combined market borrowings of 27 state governments and two Union Territories rose by 57 per cent to Rs 3.53 trillion in the first half of the current financial year (till September 2020 - H1FY21) over the same period in FY20.

The lockdown and the restrictions (to contain spread of Covid-19) imposed on the conduct of business and commercial activity over the last 6 months has led to a sharp decline in the revenues of the state governments, putting their finances under pressure. States have been increasingly resorting to market borrowings to meet their funding requirements, according to rating agency CARE