States go slow on projects, halve borrowing even as Covid wreaks havoc

The reason could lie in RBI's accommodation to them and the fact that states themselves could be burdened with interest cost

Topics
Coronavirus | Reserve Bank of India | states

Anup Roy  |  Mumbai 

States are going slow on their fund raising from the market even as the second wave of the coronavirus pandemic has turned out to be far more disastrous than the first wave.

According to Care Ratings, the aggregate state government borrowing so far this fiscal has been 54 per cent less than the corresponding borrowings last year. "Only 12 states and 1 Union Territory (UT) have raised a total of Rs 37,200 crore so far in FY22 as opposed to the 22 states and one UT that raised Rs 81,005 crore in the comparable period of FY21.” As per the borrowing calendar, 23 states and 1 ...

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First Published: Thu, May 13 2021. 19:33 IST
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