States call conditions on market borrowings an assault on federal structure

They says the conditions will constrain the state govts' ability to find funds in the wake of a serious financial situation

The Centre's move to make market borrowings by states conditional beyond a point has infuriated the latter, which say that it is an assault on the federal structure of the country.

The union government has allowed the states to borrow till their fiscal deficit hits five per cent of their respective gross state domestic product (GSDP). However, they are allowed to tap market borrowing unconditionally till their fiscal deficit reaches 3.5 per cent of GSDP. Beyond that, they have to meet four parameters -- one-nation-one-ration Card, ease of doing business, power sector reforms and urban local body reforms -- for