Page 3 - State Borrowing

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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

'No doubt' on GDP contraction in Q1: CEA Krishnamurthy Subramanian

Subramanian also said that the Centre had gone beyond its means to support states, was keeping its options open regarding deficit monetisation, and that the new privatisation policy would be out soon

States call conditions on market borrowings an assault on federal structure

They says the conditions will constrain the state govts' ability to find funds in the wake of a serious financial situation