Covid-19 stimulus: Centre allows states to borrow up to 5% of their GSDP

Revenue deficit grants of Rs 12,390 crore were given to states on time in April and May despite the Centre's stressed resources, FM Sitharaman said

The Centre on Sunday agreed to raise the borrowing limit of states from 3 per cent of gross state domestic product (GSDP) to 5 per cent in 2020-21, to make available an extra of Rs 4.28 trillion.

Releasing the fifth and final tranche of the economic stimulus package, Finance Minister Nirmala Sitharaman said the Centre devolved Rs 46,038 crore of taxes in April to states even though actual revenue shows unprecedented decline from Budget Estimates, news agency PTI reported.

Revenue deficit grants of Rs 12,390 crore were given to states on time in April and May despite the Centre's stressed