Statsguru: Covid-19 pandemic forces states to expand their borrowing

Most large states, and 13 out of the 26 that have issued state development loans so far, have borrowed at least 50 per cent more than the previous year

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Coronavirus | Reserve Bank of India

Abhishek Waghmare 

The pandemic’s impact on the economy has forced both the Centre and states to borrow more from the market to finance their expenditure. While the Centre has already expanded its gross borrowing plan to Rs 12 trillion for the financial year, states are also borrowing more by the week.

Most large states, and 13 out of the 26 that have issued state development loans (SDLs) so far, have borrowed at least 50 per cent more than the previous year, Care Ratings noted in its weekly report. But there are some states that have borrowed less (chart 1). While industrial states such as ...
First Published: Mon, August 17 2020. 06:02 IST