The State Government availed another instalment of open market borrowings of ₹1,000 crore from the Reserve Bank of India on Tuesday.
This will take the total borrowings during the first month of the second quarter to ₹5,000 crore and the current financial year to ₹12,000 crore. According to the indicative calendar of borrowings released by the RBI, the State had decided to raise ₹ 9,000 crore during the second quarter of which it had already availed of ₹5,000 crore and would be in a position to raise another ₹4,000 crore till the end of September.
The State has landed in a piquant situation ever since the Union Finance Ministry raised questions relating to financial management and debt status of the State particularly in terms of off-budget borrowings. The State could not even raise half of the ₹15,000 crore it projected during the first quarter following the queries raised by the Union Ministry.
