The State Government is unlikely to raise the targetted open market borrowings during the current financial year as the impasse over the Central Government’s approval, a mandatory requirement under Article 293 of the Constitution, is continuing.
The State Government has raised OMBs to the tune of ₹10,000 crore in three tranches this year including ₹3,000 crore on Tuesday. The Government had proposed to raise ₹53,750 crore through market borrowings for the current fiscal, but the figure had been pruned to ₹52,165 crore in the provisional data submitted to the Comptroller and Auditor General of India.
The quantum of OMBs has further been reduced by close to ₹19,000 crore following the objections raised by the Union Finance Ministry on the financial management and huge off budget borrowings raised in the name of State run corporations, sources said. Following a series of discussions, the Central Government is understood to have given in principle consent to allow OMBs of around Rs. 33,000 crore for the current year.
