Market Borrowing : Andhra Pradesh, UP, Bihar, Rajasthan Lead
Punjab's Minimal Borrowing Sparks Political Unrest
Naresh Sharma
Chandigarh, December 16 :
In terms of borrowing, Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Bihar, and Rajasthan have overtaken all other states. Punjab’s debt caused political unrest in the state with even a small increase, leading to questions about the government and demanding answers all the way up to the governor. Only Punjab has such a tradition; you would be surprised to learn about many other states in the nation. Amidst the silence of political leaders, including governors, one wonders about their quiet stance. Surprisingly,
By October 2023, Andhra Pradesh will have borrowed Rs. 59,708 crore, Uttar Pradesh Rs. 43,860 crore, Tamil Nadu Rs. 48,351 crore, Bihar Rs. 39,331 crore, Rajasthan Rs. 38,238 crore, and Madhya Pradesh Rs. 30,183 crore, leaving all other states behind, according to the comptroller and auditor general (CAG) report. West Bengal has borrowed INR 26,790 crore, Punjab 20,457 crore, and Haryana 20,204 crore.Both the ruling BJP and Congress governments are actively engaging in borrowing.
why borrowing is a topic of silence among the centre government and state governors. The reason is that all states are now able to borrow from the market up to their predetermined amount
. According to central government regulations, state governments are permitted to borrow up to three percent of their GDP (gross state product). Despite being granted authority, the central government does not object to states borrowing. The previous administration in Punjab carried on borrowing as well.
