UP to bring ordinance to raise borrowing limit to 5% of state GDP

The state gets additional elbow of Rs 35,000 crore amid lockdown

Amid Covid-19 lockdown straining both the tax and non-tax revenues, the Uttar Pradesh government will bring an ordinance to raise the borrowing limit from 3 per cent to 5 per cent marked to the Gross State Domestic Product (GSDP) during the current financial year.

The proposed UP Fiscal Responsibility and Budget Management (FRBM) Act (2nd Amendment) Ordinance 2020 will provide an additional elbow of about Rs 35,000 crore to the Yogi Adityanath government in 2020-21 to deal with the slowdown of the economic activities following lockdown.

Last month, union finance minister Nirmala Sitharaman had allowed the states to raise the net borrowing