Page 4 - State Borrowing

Tamil Nadu gets permission to borrow additional amount of Rs 9,627 crore

The Department of Expenditure under Ministry of Finance on Wednesday granted permission to Tamil Nadu to raise an additional amount of Rs 9,627 crore through open market borrowings.The permission was issued after the state formally communicated its acceptance for option one to meet the shortfall arising out of GST implementation. A total of 21 states and two union territories -- Delhi and Jammu and Kashmir -- have so far requested for option one.A day earlier, the Department of Expenditure issued permission to 20 states to raise an additional amount of Rs 68,825 crore through open market borrowings. With today's permission, 21 states have been granted permission to mobilise Rs 78,542 crore so far.The borrowing permission issued to the 21 states is over and above the borrowing permission of around Rs 1.10 lakh crore to be issued to enable them to meet the revenue shortfall arising out of GST implementation. A special window is being created by the Ministry of Finance to facilitate this

Govt allows 20 states to raise Rs 68,825 cr in borrowing for GST shortfall

The decision came a day after the GST Council meeting failed to reach a consensus over the Centre's proposal of states borrowing against future GST collections to make up for the shortfall

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Non-BJP states to oppose govt's borrowing option in GST meet tomorrow

In the current fiscal, the states are staring at a staggering Rs 2.35 trillion Goods and Services Tax revenue shortfall

Combined market borrowings of 27 state govts, 2 UTs rise 57% in H1FY21

During April-September 2019 (H1FY20), states had raised Rs 2.25 trillion

Credit for reform: Centre allows 5 states to borrow Rs 9,913 cr extra

Permission granted on meeting of one-nation-one-ration card reform

5 states allowed to borrow Rs 9,913 cr extra after ration card reform

Andhra Pradesh can borrow Rs 2,525 crore, Telangana Rs 2,508 crore, Goa Rs 223 crore, Karnataka Rs 4,509 crore and Tripura Rs 148 crore, said the Finance Ministry's Department of Expenditure

States forced to pay higher spread as oversupply concerns take hold

The rise in spreads is a direct measure of market displeasure than a rise in yields. This is because if spreads widen, SDL yields could still rise even when G-sec yields remain where they are

21 states opt for Rs 97,000-crore RBI window to meet GST shortfall

This would help the proposal get cleared in the GST Council in case of voting

Coronavirus-hit states' borrowings soar 51% to Rs 2.97 trn so far in FY21

Heavily indebted Uttar Pradesh borrowed 43 per cent less than what it had borrowed last fiscal till September 8

States' market borrowing set to get costlier; SDL yields rise 24 bps

Yields on the three-year SDLs have jumped 35 bps to 5.09 per cent this month

FRBM hike not enough; need 0.75 percentage point leeway: Thomas Isaac

In an interview with Dilasha Seth, Kerala Finance Minister Thomas Isaac says if the issue isn't settled, states will have to move Supreme Court

Borrowing by states for GST compensation to be cost inefficient: Punjab FM

Attorney General K K Venugopal has suggested that the Council can recommend to the Centre to allow states to borrow on the strength of future receipts from the compensation fund

Covid-19 impact: Govt writes to states on additional 2% borrowing of GSDP

Further, public and private sector banks have together sanctioned loans worth over Rs 1.20 trillion, while the disbursal amount stood at Rs 61,987 crore

GST compensation period: States likely to push for five-year extension

Set to seek higher borrowing limits as revenues dry up

The new normal for state borrowings

Have the states shown a lack of prudence in their borrowing programme to tide over the pandemic?

Borrowings by states double to Rs 1.7 trn in Q1FY21 over Covid-19: Icra

"Icra estimates the net SDL (state development loans) issuance in Q1 FY2021 to have expanded by a sharp 135.6 per cent to Rs 1.4 trillion from Rs 0.6 trillion in Q1 FY2020," it said

States continue to tap cheap rates to borrow more than originally planned

Seven state governments had lined up to borrow Rs 9,000 crore, but ended up borrowing Rs 12,000 crore from the markets because of the cheap rates.

Ratio of India's public debt to GDP likely to scale a new high in FY21

According to the Reserve Bank of India (RBI) data, the combined liabilities of the Centre and the state governments were around Rs 147 trillion at the end of March 2020

Chhattisgarh pushes for easing terms attached to hike in state borrowings

Says Centre's economic package is not enough, and states are also finding it diffcult to raise additional resources given the stringent conditions