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Bihar deputy CM welcomes Centre’s move to raise borrowing limit of states to 5% from 3%
PATNA
PATNA
Bihar’s deputy chief minister cum finance minister Sushil Kumar Modi on Sunday welcomed Union finance minister Nirmala Sitharaman’s announcement of increasing the borrowing cap of states from 3% to 5% of the state gross domestic product( SGDP), saying it would fulfil fiscal needs of the states.
“At a time, when Bihar’s revenue has declined drastically following lockdown with the state earning only 14% of revenue in month of April this year as against corresponding period last year, the increase in borrowing limit is the only alternative to meet the resource gap. We had requested the Centre to increase the borrowing limit and it has been fulfilled,” said Modi.
He said the increase in borrowing limit would help the state to take additional Rs 12,922 crore as loans as against the existing limit of Rs 39,341 crore. In addition to that, Modi said the government can take additional Rs 3,230 crore at the rate of 0.5% without any condition. On the states having used only 14% of the borrowing limit with 86% remaining unutilized, the finance minister said the state would take more loans as per need after assessing the fiscal situation and utilise the increase in borrowing limit.
He said the announcement of allocation of additional Rs 40,000 crore in MGNREGA would benefit Bihar for creating more employment opportunities for migrants returning home.
“ We have already issued 2.17 lakh new job cards and 3.50 lakh schemes are under implementation . Bihar has already Rs 1,124 crore as allocation under MGNREGA in month of April and the state is expecting allocation of Rs 2,535 as allocation under the job guarantee scheme,” he said.
Modi also praised the focus of financial package on online education and the health sector. “ The decision of opening infectious disease hospitals in each district and public health labs at block level will facilitate in advanced health care system,” he said. “ In totality, this package is not only an interim assistance but would prove as a milestone in giving a big boost to the infrastructure and strengthening the economy in the long term,” Modi said.
