FinMin writes to states on additional 2 pc borrowing

The finance ministry has written to the states on additional borrowing of 2 per cent of their projected GSDP in the current financial year, amid stress in revenue due to coronavirus-induced lockdown. Further, public and private sector banks have together sanctioned loans worth over Rs 1.20 lakh crore, while the disbursal amount stood at Rs 61,987 crore, under the Emergency Credit Line Guarantee Scheme for MSMEs.

As part of the Aatmanirbhar Bharat package announced in May, Finance Minister Nirmala Sitharaman had announced that the Centre has decided to accede to the request and increase borrowing limits of states from 3 per cent to 5 per cent, for 2020-21, which will make available extra resources of Rs 4.28 lakh crore.

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