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Govt raises states' borrowing limits for FY21 to 5% of GDP from 3.5% now

city New Delhi covid-19 pandemic Government strain
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NEW DELHI: The government on Sunday raised borrowing limits for states for the current fiscal to 5% of GDP from 3% at present, subject to their carrying out specific reforms.

States fighting the covid-19 pandemic and the resultant lockdown to contain the spread of the disease, have come under considerable strain, with economic activity at a near standstill and their revenues shrinking.

States have been asking the Centre to allow them to borrow more from the market to finance coronavirus-related expenses. Part of the borrowing will be linked to specified reforms, including recommendations by the 15th Finance Commission such as ensuring sustainability of additional debt through higher future GSDP growth and lower deficits, promoting welfare

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
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Brazil
Brazil
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Deaths: 608 235
Recovered: 0
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United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
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