The latest RBI data collated by Care Ratings shows that 28 states and two union territories collectively borrowed ₹7.12 lakh crore so far in the current financial year, which is over 30% higher than what these states and union territories borrowed last year
KOLKATA : The market borrowing by West Bengal in the 11 months of the current fiscal rose by 4% at ₹49,000 crore amid the COVID-19 pandemic, latest available data showed.
The latest RBI data collated by Care Ratings shows that 28 states and two union territories collectively borrowed ₹7.12 lakh crore so far in the current financial year, which is over 30% higher than what these states and union territories borrowed last year.
The West Bengal Finance department officials claimed that borrowings rose by only four per cent because of better financial management in difficult times by prioritising expenses and improvement in revenue with gradual unlocking.
Some states like Madhya Pradesh borrowed higher by 112%, Jharkhand by 113% and Sikkim 108%.
Other states which reported jump in market borrowings are Rajasthan (57%), Maharashtra (54%), Karnataka (43%), Tamil Nadu (37%), Telangana (36%) and Andhra Pradesh (28%).
However, five states borrowed less than last year. These include Odisha (by 45%), Tripura (by 27%), Manipur (15%), Arunachal Pradesh (14%) and Gujarat (6% less).
The states mostly borrow RBI managed State Development Loans (SDL) which are debt issues by the state governments to fund their fiscal deficit.
West Bengal in November last year agreed with the ₹1.1 lakh crore borrowing "option" offered by the Centre to meet the shortfall in goods and services tax (GST) compensation, but has asked the Centre to borrow the remaining shortfall of ₹72,000 crore till January 2021, as well.
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