States borrow only 84% of Rs 1.9-trillion notified amount in first quarter

This initiative entails providing special assistance to State Governments through 50-year interest-free loans, amounting to a total of Rs. 1.3 trillion during the financial year 2023-24.

States and Union Territories (UTs) tapered their borrowing in the first quarter of the current financial year, and borrowed only 84 per cent of the notified amount of Rs 1.9 trillion.

“States are not going for the full amount because they are getting assistance from the central government,” a dealer at a state-owned bank said. “A few days ago, they received some amount from the central government for infrastructural development.”

The central government on Monday granted approval for interest-free and long-term capital expenditure loans amounting to Rs 56,415 crore to 16 states for the fiscal year 2023-24 so far, under