NEW DELHI: The Centre has permitted Andhra Pradesh to go for additional borrowing of Rs 2,525 crore through Open Market Borrowings (OMBs) to meet its expenditure requirements amid falling revenues due to the COVID-19 crisis.
The Department of Expenditure, under the Finance Ministry, has accorded approval to five states: Andhra Pradesh, Telangana, Goa, Karnataka and Tripura. The sum total comes to Rs 9,913.
Karnataka is allowed borrowing of Rs 4,509 crore, followed by Telangana (Rs 2,508 crore) and Andhra Pradesh (Rs 2,525 crore). Goa intends to raise Rs 223 crore while Tripura Rs 148 crore.
The permission has been accorded after these states successfully met the reform condition of implementation of “One Nation One Ration Card” system, an official statement said.
In view of the unprecedented COVID-19 pandemic, the Centre had in May allowed additional borrowing limit of up to 2 per cent of Gross State Domestic Product (GSDP) to states for the year 2020-21 with certain conditions. This made an amount up to Rs 4,27,302 crore available to the states.
The four reforms are — implementation of “One Nation One Ration Card” system; ease of doing business reforms; urban local body/utility reforms; and power sector reforms by privatising power distribution.
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