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In an unprecedented move necessitated by the coronavirus (Covid-19) pandemic, the Centre has allowed states to avail of up to 50 per cent of their 2020-21 (FY21) borrowing requirements in April itself, Business Standard has learnt.
The move became imperative because of the Centre’s resource crunch owing to dwindling revenues and the resultant inability to pay all of the dues of the states under various heads, including devolution, goods and services tax compensation, various grants, and the financial packages which the states have been demanding. “States have been given permission to borrow up to 50 per cent of their FY21
