Tamil Nadu News

25,000 crore market borrowings

July 6 , 2023 1177 days 1505 0

The Tamil Nadu government plans to raise ₹25,000 crore from market borrowings in the second quarter (July-September) of fiscal 2024.
It borrows from the market through the auction of bonds known as State Development Loans (SDL).
As per the budget for 2023-24, the State government plans to borrow a total amount of ₹1,43,197.93 crore in 2023-24.
It also will make repayments of ₹51,331.79 crore.
The net borrowings are projected at ₹91,866.14 crore.
It was including ₹82,625.96 crore of net open market borrowings and ₹9,240.18 crore from other sources.
The Centre has fixed a borrowing ceiling for the States.
States can borrow up to 3% of their Gross State Domestic Product (GSDP) for 2023-24.
An additional borrowing of 0.5% of GSDP is allowed for fulfilment of power sector reforms.
In the Budget Estimates for 2023-24, Tamil Nadu’s fiscal deficit is estimated at 3.25% of the GSDP.
The fiscal deficit is the difference between total receipts and total expenditure.
Tamil Nadu ended fiscal 2022-23 with gross market borrowings of ₹87,000 crore and was the top borrowing State.