Borrowing limit of states increased from 3 to 5% of state GDP on their request: FM

Nirmala Sitharaman in the fifth trance said that states have so far borrowed only 14 percent of the limit which is authorised to them. 86% of the limit remains unutilized. Centre has decided to increase borrowing limits of states from 3% to 5% of Gross State Domestic Product (GSDP) for 2020-21. This will give states extra resources of Rs 4.28 lakh crore. Part of the borrowing by states will be linked to specific reforms.