Market borrowings
Loans from the central government
External borrowings from multilateral agencies
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is: d) All of the above
Arunachal Pradesh may borrow funds for development projects through:
- Market borrowings. This means that the state government can issue bonds or other debt instruments to raise money from investors.
- Loans from the central government. The central government can provide loans to states for development projects, often on concessional terms.
- External borrowings from multilateral agencies. Multilateral agencies such as the World Bank and the Asian Development Bank can provide loans to developing countries for development projects.
Each of these options has its own advantages and disadvantages. Market borrowings can be expensive, but they give the state government more flexibility in how it uses the funds. Loans from the central government are often less expensive, but they may come with conditions that the state government has to meet. External borrowings can be expensive, but they may also come with technical assistance and other benefits.
The state government will need to consider all of these factors when deciding how to borrow funds for development projects.