Centre raises borrowing limit of states including Kerala
New Delhi: The central government has increased the borrowing limit of six states including Kerala. The 6 states namely Goa, Uttarakhand, Andhra Pradesh, Odisha, Kerala and Madhya Pradesh which recently implemented various administrative reforms are permitted to take loan above Rs 1 lakh crore.
Earlier, the central government announced that the borrowing limit will be increased if the states are implementing the recommended reforms in administration. The centre introduced the reforms as part of the consolation programmes during the last lockdown. Kerala had executed these reforms of linking ration card with Aadhaar earlier.
But the West Bengal didn’t implement any of the reforms recommended by the centre.
The central government also directed the states that the borrowed fund can be used for any development projects except Atma Nirbhar Bharat.