{"id":86546,"date":"2020-05-18T22:37:48","date_gmt":"2020-05-18T17:07:48","guid":{"rendered":"https:\/\/factly.forumias.com\/?p=15512"},"modified":"2020-05-18T22:37:48","modified_gmt":"2020-05-18T17:07:48","slug":"centre-raises-borrowing-limit-of-states-from-3-pc-of-gsdp-to-5-pc-in-fy21","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/centre-raises-borrowing-limit-of-states-from-3-pc-of-gsdp-to-5-pc-in-fy21\/","title":{"rendered":"Centre raises borrowing limit of states from 3 pc of GSDP to 5 pc in FY21"},"content":{"rendered":"\n<p><strong>News: <\/strong>The Central Government has increased the borrowing limit of states from 3% of gross state domestic product (GSDP) to 5%.<\/p>\n\n\n\n<p><strong>Facts:<\/strong><\/p>\n\n\n\n<p><strong>Key Facts:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>States have so far borrowed only 14% of the 3% of GSDP limit which is authorised to them while 86% of the limit remains unutilized.However,the limit of states has now been increased from 3% of gross state domestic product (GSDP) to 5%.<\/li><li>But part of this borrowing will be linked to specific reforms in four areas:&nbsp;<ul><li>Universalisation of \u2018One Nation One Ration card\u2019<\/li><li>Ease of Doing Business<\/li><li>Power distribution and&nbsp;<\/li><li>Urban Local Body revenues.&nbsp;<\/li><\/ul><\/li><li>A specific scheme will also be notified by Department of Expenditure on the following pattern:<ul><li>Unconditional increase of 0.50%&nbsp;<\/li><li>1% in 4 tranches of 0.25%, with each tranche linked to clearly specified, measurable and feasible reform actions<\/li><li>Further 0.50% if milestones are achieved in at least three out of four reform areas.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p><strong>Additional Facts:<\/strong><\/p>\n\n\n\n<p><strong>Fiscal Responsibility and Budget Management Act(FRBM Act):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It was enacted in 2003 to introduce transparency in India\u2019s fiscal management systems by reducing fiscal deficit.<\/li><li>The act mandated the reduction of the fiscal deficit to 3% of GDP but it has been subsequently amended and the present target is 3.1% by March 2023.<\/li><li>The states have also enacted their own respective fiscal Responsibility Legislation which sets 3% of Gross State Domestic Product(GSDP) cap on their annual budget deficits.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Central Government has increased the borrowing limit of states from 3% of gross state domestic product (GSDP) to 5%. Facts: Key Facts: States have so far borrowed only 14% of the 3% of GSDP limit which is authorised to them while 86% of the limit remains unutilized.However,the limit of states has now been&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/centre-raises-borrowing-limit-of-states-from-3-pc-of-gsdp-to-5-pc-in-fy21\/\">Continue reading <span class=\"screen-reader-text\">Centre raises borrowing limit of states from 3 pc of GSDP to 5 pc in FY21<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[4114],"class_list":["post-86546","post","type-post","status-publish","format-standard","hentry","category-economy","tag-borrowing-policy-for-states","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704878059},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86546"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86546\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}