Page 2 - State Govt Market Borrowings

Borrowing costs rise sharply for states on Ukraine-led geopolitical strife

Cut- off for state Development Loans up by 19 bps this week over auction held last week

Borrowing by state govts 11% lower than last year: CARE Ratings

25 states, 1 UT have raised Rs 2.92 trn, against Rs 3.27 trn by 27 states, 2 UTs last fiscal

Tamil Nadu, India's 2nd-most industrialised state, in favour of debt recast

The states' inflated debt sale schedule alludes to that possibility. They are scheduled to borrow as much as Rs 1.78 trillion ($25 billion) from the market in the April-June quarter

States close FY21 with borrowing 3% less than notified Rs 8.24 tln

This is is Rs 25,393 crore or around 3 per cent less than the indicated debt for the fiscal

FinMin releases Rs 6K crore to states to meet GST compensation shortfall

The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 trillion in revenue arising on account of implementation of GST

States' market borrowings jump 55% to Rs 3.75 trillion so far this fiscal

The states' market borrowings have jumped 55% to Rs 3.75 trn, or 75% of the budgeted amount, with 17 of them raising an additional Rs 22,350 crore from the latest auction of state development loans

13 states submit borrowing option to Centre to fund GST shortfall

These 13 states include Bihar, Odisha, Andhra Pradesh, Gujarat, Uttarakhand and Meghalaya

GST row: Compensate states that picked a borrowing option, says Sushil Modi

While Bihar, Gujarat, Karnataka, Tripura and Madhya Pradesh opted for the Reserve Bank of India (RBI) window, Manipur and Sikkim went for market borrowing

Amid Centre-states GST row, a white-knuckle moment for bond markets

Centre-state GST equation to be keenly watched

In absence of GST compensation, states may cut FY21 capex by Rs 3 trn: ICRA

The borrowing alternative offered by the Centre to make up for the shortfall in the promised compensation will lead to the states' fiscal deficits widening to 4.25 - 5.52 per cent

Entire GST shortfall will be compensated, says govt ahead of Sept 10 meet

The finance ministry ruled out borrowing by the Centre as suggested by some states

Centre, state finmin officials thrash out GST compensation gaps

The states were informed that if they take the option of borrowing Rs 97,000 crore under a special window, they will still get Rs 2.35 trillion minus Rs 97,000 crore from the compensation cess

States' fiscal deficit likely to hit 4.2-5.5% of GSDP this fiscal year

This may take the general deficit of the country-- both the Centre's and states'-- to 11-14 per cent of GDP in FY21

Managing markets

Bond and currency markets would increase policy difficulties

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.

Borrowings by states double in lockdown owing to severe revenue crunch

Market borrowings at over Rs 1.26 trn in April-early June, against Rs 60,000 cr in the year-ago period

Punjab approves reforms to avail additional borrowing of 1.5% of GSDP

The additional borrowing would help state tide over the estimated 30 per cent revenue shortfall in 2020-21 fiscal

After govt hikes market borrowing limit, states redraw their road maps

Union government has allowed states to borrow till their fiscal deficit hits 5 per cent of their respective gross state domestic product (GSDP)

No restrictions on utilisation of additional borrowing by states: FinMin

It is to be noted that the basic limit of 3 per cent remains unconditional, while only additional one per cent out of the two is linked to citizen centric reforms, Finance ministry official said.

I've to be careful, am answerable to Parliament: FM Nirmala Sitharaman

Nirmala Sitharaman tells Indivjal Dhasmana & Nivedita Mookerji that the government has made sure that mistakes committed during 2008-2013 are not repeated while announcing the Rs 20-trillion package.