The State Government has determined to raise ₹13,000 crore by open market borrowings during the January-March final quarter of the present monetary yr.
Accordingly, the Government proposed to raise ₹4,000 crore in January, ₹3,000 crore in February and one other ₹6,000 crore in March. The Government raised ₹42,551 crore by OMBs within the first 9 months of the present fiscal and the proposed market borrowings would take the whole for the monetary yr to round ₹55,500 crore.
The State Government has opted for elevating the loans regardless of the restrictions imposed by the Union Finance Ministry on the borrowings. The Union Ministry, in response to a question, clarified that no restrictions had been imposed on the State and it will undertake a standard yardstick for all States whereas granting them permission underneath Article 293(3) of the Constitution for borrowing from the open market and different sources.
Accordingly, the borrowing restrict for the State was arrived at ₹57,813 crore, nevertheless it had been decreased to ₹42,225 crore after adjusting the over borrowing of ₹15,588 crore of the earlier monetary years. The State had opted for negotiated loans of ₹1,500 crore and an estimated borrowing from the general public account of ₹4,107 crore leaving the State an choice of elevating ₹36,617 crore open market borrowings.
However, the State had far exceeded this restrict by December finish. The provisional information submitted to the Comptroller and Auditor General of India confirmed that the State borrowed ₹38,151 crore until October finish as towards the ₹38,234 crore projected for the total yr within the finances estimates. The State raised further borrowing of ₹4,400 crore in November and December taking the whole borrowings to ₹42,551 crore.
Given this background, doubts are being raised on whether or not the Union Finance Ministry would enable the State to borrow the proposed quantity a lot greater than the restrict fixed by it for the present fiscal. Finance division officers are nevertheless justifying the State’s indent filed with the RBI claiming that it was proposed to raise ₹57,813 crore by borrowings within the present yr’s finances and the State couldn’t lose out on its proper due to the restrictions imposed by the Centre.
