Nod for ₹2,255 cr. additional borrowing
The Union Finance Ministry has permitted the State to borrow an additional ₹2,255 crore as an incentive for meeting capital expenditure targets for the first quarter of 2021-22.
Kerala is among 11 States granted permission by the Department of Expenditure, Finance Ministry, for the additional market borrowing to the tune of ₹15,721 crore. The additional resources would help the States to push their capital expenditure further, the Ministry said.
To become eligible for incremental borrowing, States should achieve at least 15% of the target by the end of the first quarter, 45% by the end of the second, 70% by the end of the third, and 100% by the end of the fourth on March 31, 2022.
The other 10 States that have been granted permission are Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Madhya Pradesh, Manipur, Meghalaya, Nagaland, Rajasthan and Uttarakhand.
The amount for which the permission has been granted comes to 0.25% of their GSDP.