2020
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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10%
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5%
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8%
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7%
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Detailed explanation-1: -The Centre will set the borrowing limit for states in FY24 at 3.5% of gross state domestic product (GSDP), including 50 basis points linked to power sector reforms. This is in sync with the fiscal path recommended by the 15th Finance Commission (FC).
Detailed explanation-2: -NEW DELHI: The Centre increased the borrowing limit of states to 5% of gross state domestic product (GSDP) in 2020-21 from 3%, a move that will make an additional Rs 4.28 lakh crore available to them.
Detailed explanation-3: -AMFI data shows that Maharashtra, New Delhi and Karnataka are the top three states with highest debt assets. These three states collectively account for 72% of the total debt assets of the MF industry. Maharashtra has a lion share with debt assets of Rs. 10.50 lakh crore.
Detailed explanation-4: -The Net Borrowing Ceiling (NBC) of the States for the year 2022-23 has been determined at Rs. 8, 57, 849 crore at 3.5% of GSDP based on the GSDP data published by NSO and methodology prescribed by 15th Finance Commission.
Detailed explanation-5: -Article 293 in The Constitution deals with the Borrowing by States. It says: The executive power of a State extends to borrowing within the territory of India upon the security of the Consolidated Fund of the State within such limits, and to the giving of guarantees within such limits, if any, as may be so fixed.