Current Affairs Exam

Cabinet grants approval to increase states borrowing limit to Rs 3,600 crore

The state cabinet on Wednesday granted approval to the Goa Fiscal Responsibility and Budget Management (Amendment) Bill,2022, which is aimed at increasing the states borrowings by 1% of the gross state domestic product (GSDP) for the financial year 2022-2023. The 1% increase will allow the state to borrow up to 4% of the GSDP.

The bill will be introduced in the monsoon session of the state assembly.
The state GSDP is approximately Rs 90,000 crore.

With this amendment, the can borrow a maximum of Rs 3,600 crore.
In the financial year 2021-2022, the state government borrowed around Rs 2,700 crore through the open market. The borrowing limit was around Rs 3,200 crore.

As per the Union finance ministry, the state can carry forward the unutilised borrowing to the subsequent financial year.

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