Page 2 - State Govt Market Borrowings
Managing markets
Bond and currency markets would increase policy difficulties
 "Managing markets")
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.
 "States continue to tap cheap rates to borrow more than originally planned")
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
 "Borrowings by states double in lockdown owing to severe revenue crunch")
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
 "Punjab approves reforms to avail additional borrowing of 1.5% of GSDP")
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)
 "After govt hikes market borrowing limit, states redraw their road maps")
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.
 "No restrictions on utilisation of additional borrowing by states: FinMin")
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.
 "I've to be careful, am answerable to Parliament: FM Nirmala Sitharaman")
Borrowing limit raised, but states won't rush to make use of the chance
Only eight states will qualify for the extra borrowing, as they have to meet stiff conditions on ease of doing business.
 "Borrowing limit raised, but states won't rush to make use of the chance")
Covid-19 impact: States borrow Rs 12,128 cr from bond market at lower rates
The cut-off yield for 10-year state development loans was at 7.60-7.65 per cent, whereas the 10-year government securities closed at 6.50 per cent.
 "Covid-19 impact: States borrow Rs 12,128 cr from bond market at lower rates")
'State govt market borrowings' issuance may rise upto Rs 5 lakh cr in FY18'
Icra estimates that around three-quarters of the total SDL redemption of over Rs 700 bn due in current fiscal
 "'State govt market borrowings' issuance may rise upto Rs 5 lakh cr in FY18'")
