The Centre, on Sunday, announced that it was increasing the states’ borrowing limits from the current 3% to 5% of the states’ Gross State Domestic Product (GSDP) for the financial year 2020- 21. This increase would enable states to mobilise extra money to the tune of Rs 4.28 lakh crore, according to the central government. However, there is a catch to this 2% increase in borrowing limits by the states. The permission to borrow more will be granted to the states based on the fulfilment of certain conditions imposed by the Centre, including recommendations by the Finance Commission.
Producer - G.Palanichamy
Video - T.Vijay
Edit- Arunkumar
Executive Producer - Durai.Nagarajan
