The State government has decided to raise market borrowings of ₹500 crore. It has put up an indent for raising the amount through auction of securities to be conducted by the Reserve Bank of India on Tuesday. The development assumes significance as the State is inching closer to the limit on borrowings imposed by the Union Finance Ministry.
The Union Ministry, in response to a query, said that the borrowing limit of the State for 2023-24 was set at ₹57,813.99 crore. However, as the State government had over-borrowed in the preceding financial years, the gross borrowing limit of the State had been fixed at ₹42,225 crore after adjusting over borrowing of ₹15,588 crore of previous years.
Of the limit set by the Union Finance Ministry, the State had opted for negotiated loans of ₹1,500 crore and estimated borrowing from the public account was ₹4,107 crore, leaving a space for mobilising the remaining ₹36,617 crore from the open market.
