States' borrowings see a rise

As the Centre buys back its bonds, the state governments continue to pile up more papers in the market. 

The total borrowing so far this financial year by all states have neared Rs 3.2 lakh crore. Bond traders expect the borrowing to touch Rs 3.5 lakh crore by the end of the financial year, which would be similar to what the Centre used to borrow a few years back. Bond dealers expect borrowings of the states to touch Rs 4.5 lakh crore in the next financial year. On Tuesday, 16 states borrowed Rs 21,600 crore from the markets, against a notified