Uncertainty prevails over the quantum of open market borrowings the State can raise during the current financial year.
The Central government has no doubt given ‘ad hoc’ approval for raising OMBs to the tune of ₹4,000 crore in the auction of securities to be conducted by the Reserve Bank of India (RBI) on Tuesday. Officials remained tight-lipped when asked whether the permission given by the Union Finance Ministry related to the present quarter, half year or for the full fiscal.
“Ad hoc is temporarily given before the permission for the whole year is granted,” was how a senior official responded. He was confident that the State will get the permission sooner than later to raise a major chunk of the OMBs if not the entire amount it had projected in the budget estimates. The State had projected borrowings and other liabilities to be of the order of ₹52,167 crore during the current fiscal.
