Govt clears relaxation of borrowing norms for states

The Centre today allowed states to borrow up to an additional Rs 21,000 crore in the current fiscal to deal with the economic slowdown.

The decision to relax the borrowing norms was taken by the Union Cabinet here.

The new guidelines will enable states to borrow up to 4 per cent of their Gross State Domestic Product (GSDP) against 3.5 per cent earlier.