Amid Tussle over Compensation Dues, Here's Why States' Expenditure Matters More Than Borrowing
4 years, 3 months ago

Amid Tussle over Compensation Dues, Here's Why States' Expenditure Matters More Than Borrowing

News 18  

This year, Indian state governments, so far, have market loans, borrowings amounting to Rs 1.93 lakh crore, which is 76 per cent higher than the corresponding period last year. Especially, states like Maharashtra and Uttar Pradesh had an accumulated outstanding debt of around Rs six lakh crore while Maharashtra had a debt of Rs five lakh crore. States like Haryana, Uttar Pradesh, Himachal Pradesh, Uttarakhand, and Maharashtra are facing a decline of over 30% in their GST revenues during April and August 2020, according to Minister of State for Finance Anurag Thakur. Take the largest state Uttar Pradesh, in the April-June 2020 period, the state has notched up revenues receipts of Rs 44,801 crores but its expenditure shot up to more than Rs 58,500 crore.

Uttar Pradesh Maharashtra States Debt State Crore Gst Borrowing Expenditure Matters Liquidity Crisis  dues  compensation  rs  state  heres  borrowing  gst  expenditure  matters  liquidity  crisis  states  crore  debt  tussle  amid

History of this topic

Himachal faces financial crisis, ministers not to draw salaries for 2 months
4 months, 2 weeks ago

Himachal faces financial crisis, ministers not to draw salaries for 2 months

India Today  

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Thursday told the state Assembly that all state ministers, chief parliamentary secretaries and Cabinet-rank members won't draw salaries and allowances for two months as the state is undergoing a financial crisis. The state government has implemented five election promises, including Rs 1,500 per month to five lakh women, on which an estimated …

Is the Centre fair in imposing cuts in borrowing limits of States retrospectively?
2 years, 2 months ago

Is the Centre fair in imposing cuts in borrowing limits of States retrospectively?

Deccan Chronicle  

The need for maintaining fiscal sustainability is unquestionable. While the Centre has been consistent in flouting the limits mandated under the Fiscal Responsibility and Budget Management Act with impunity, states have by and large maintained their fiscal indicators within limits. While communicating the net borrowing ceilings of states for the financial year 2022-23, the Centre, for the first time, indicated …

Why it’s time to worry about state finances
2 years, 6 months ago

Why it’s time to worry about state finances

Live Mint  

State governments are confronting various fiscal risks, particularly heavy debt, says the Reserve Bank of India’s latest bulletin. However, a rising trend in providing freebies such as free power, water, and gender-based free bus rides in many states have eaten into the expenditure pie. Power sector accounts for a large portion of states’ financial burden, since dues owed by discoms …

Several states showing warning signs of stress; need to take corrective actions, says RBI article
2 years, 6 months ago

Several states showing warning signs of stress; need to take corrective actions, says RBI article

Firstpost  

The article was prepared by a team of economist under the guidance of deputy governor Michael Debabrata Patra Mumbai: Referring to economic crisis in Sri Lanka, a Reserve Bank article on Thursday said states are showing warning signs of building stress, and the five most indebted ones – Punjab, Rajasthan, Bihar, Kerala and West Bengal – need to take corrective …

All dues to States cleared, asserts Finance Minister
2 years, 9 months ago

All dues to States cleared, asserts Finance Minister

The Hindu  

Facing allegations from State governments ruled by the Opposition parties on the reported delay in clearing of Centre’s dues, Union Finance Minister Nirmala Sitharaman on Monday asserted that all dues up till February this year had been cleared. Stating that the current economic realities should be kept in view while talking about the reduction in interest rates for EPF from …

Tamil Nadu, 20 Other States to Borrow Additional Rs 78,452 Cr to Meet Revenue Shortfall
4 years, 3 months ago

Tamil Nadu, 20 Other States to Borrow Additional Rs 78,452 Cr to Meet Revenue Shortfall

News 18  

A day after granting permission to 20 states for mobilising Rs 68,825 crore, the government on Wednesday allowed Tamil Nadu to raise an additional Rs 9,627 crore through open market borrowings to bridge the revenue shortfall caused by the COVID-19 pandemic. The borrowing permission issued to the 21 states is over and above the borrowing permission of around Rs 1.10 …

States' Market Borrowings Jump 55% to Rs 3.75 Lakh Crore So Far This Fiscal
4 years, 3 months ago

States' Market Borrowings Jump 55% to Rs 3.75 Lakh Crore So Far This Fiscal

News 18  

The states' market borrowings have jumped 55 per cent to Rs 3.75 lakh crore so far this fiscal, or 75 per cent of the budgeted amount, with 17 of them raising an additional Rs 22,350 crore from the latest auction of state development loans held on Tuesday. So far this fiscal year, 28 states and two Union Territories have cumulatively …

'Difficult, Expensive': In Letter to PM Modi, Tamil Nadu CM Lists Problems With 'States Should Borrow' Plan
4 years, 4 months ago

'Difficult, Expensive': In Letter to PM Modi, Tamil Nadu CM Lists Problems With 'States Should Borrow' Plan

News 18  

The Centre has a moral and legal obligation to pay compensation for the shortfall in GST collections and asking States to borrow from the market is administratively difficult to implement and more expensive, Chief Minister K Palaniswami asserted on Monday. The Union Finance Ministry should agree to a mechanism in which the government of India raises the required funds as …

State borrowings set to rise 53% in first half: Care Ratings
4 years, 6 months ago

State borrowings set to rise 53% in first half: Care Ratings

The Hindu  

In an indication of liquidity issues, 13 States are found to have raised ₹12,750 crore through auction of State Government securities or State Development Loans on July 7. So far in the current fiscal, 23 States and one UT have cumulatively raised ₹1.8 lakh crore via market borrowings, which is an increase of 75% from the borrowings in the corresponding …

Covid-19: Shoring up states financial muscle in times of a crisis
4 years, 9 months ago

Covid-19: Shoring up states financial muscle in times of a crisis

Business Standard  

In view of the ongoing crisis, the government has come up with several measures to aid the economy. Here’s the latest on the coronavirus outbreak and government measures to contain its impact on the economy: Last month, even before the Reserve Bank of India issued the indicative borrowing calendar for the states for April-June and the one for the Centre …

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