- 5 states approved to take additional loan of Rs 9,913 crore from open market
- This was allowed to meet expenditure requirements amidst revenue reduction
- This facility has been extended to Andhra Pradesh, Telangana, Goa, Karnataka and Tripura
The Center on Thursday approved 5 states to take an additional loan of Rs 9,913 crore from the open market. This permission has been given to the states to meet the expenditure requirements amidst revenue reduction due to Kovid-19 crisis. These states are Andhra Pradesh, Telangana, Goa, Karnataka and Tripura. An official statement said that these states have been given this approval after successfully following the reform conditions for the implementation of the ‘one country one ration card’ system.The Department of Expenditure under the Ministry of Finance has approved additional borrowing of Rs 4,509 crore for Karnataka, Rs 2,508 crore for Telangana and Rs 2,525 crore for Andhra Pradesh. Goa has been approved to take loans of Rs 223 crore and Tripura Rs 148 crore from the market. In view of the Kovid-19 crisis, the Center in May allowed states to take additional debt of up to 2 percent of gross state domestic product (GSDP) for the fiscal year 2020-21.
Now enjoy the Internet in flight, Jio started on these routes
Allowed with conditions
This loan was granted with certain conditions. Under this, all states can raise up to Rs 4,27,302 crore in total. Out of the total 2 percent, only 0.5 percent is unconditional. After that the states have to implement 4 reforms at the state level. In this, 0.25% of the weighted GSDP was kept for each improvement. That is, it will be allowed to raise the loan at the rate of 0.25 percent for each improvement.
Harley-Davidson will merge business in India, know what is the reason
These are four reforms, one country one ration card system, improvement in ease of doing business, improvement in urban local bodies / utility services and improvement in power sector through privatization of distribution companies. The remaining one percent loan limit will be released in two equal installments. All the states will get instant permission for the first installment without any condition. At the same time, the second installment of 0.50 percent will be allowed on implementation of at least three of the above reforms.
The Government of India has already allowed 0.50 per cent in June 2020 through Open Market Loans (OMB). With this, an additional amount of Rs 1,06,830 crore has been made available to the states. A net loan limit of Rs 6.41 lakh crore (3 percent) is fixed for the states for 2020-21.