Data Drive: Borrowing room

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For the current financial year, the government has set net borrowing ceiling of states at 3.5% of GSDP or Rs 8.6 trillion, and an additional 0.5% of GSDP or Rs 1.2 trillion linked to certain power sector reforms.

The net borrowings ceiling was raised to 5% in FY21 and set at 4.5% in FY22 because of the pandemic-induced spending.

In FY22, 10 states led by Tamil Nadu and Uttar Pradesh could borrow an aggregate extra of Rs 28,200 crore for completing power sector reforms, one of the criteria for the additional borrowings.