Mumbai: Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh and Rajasthan have been the top five borrowing states so far in FY22, accounting for around 60% of the total borrowings. Maharashtra Government, which is struggling to meet the revenue shortfall due to the economic downturn and coronavirus pandemic restrictions, has raised Rs 35,750 crore during April-August against 34,500 crore a rise of 4%.
A state finance department officer told the Free Press Journal, ‘’The government continues to face revenue shortage because of the disruption caused by the coronavirus pandemic and the subsequent lockdown. The economic downturn has also impacted the state’s revenue collection. The state has to resort to market borrowings to meet the shortfall.’’ He informed that state’s revenue receipts for July 2021 were Rs 20,493.38 crore against Rs 20,599.81 crore in July 2020.
Total revenue as on August 2 is Rs 77,031.15 crore against the budget estimate of 2021-22 of Rs 3,68,986.86 crore. State has yet to receive GST compensation worth Rs 23,850.52 crore from the Centre
State’s market borrowings stood at Rs 35,750 crore between April 8 and August 17, 2021 compared to the indicative borrowing of 38,000 crore for the same period.
According to CARE Ratings, the market borrowings of the state governments including Maharashtra so far in FY22 has been 12% less than that in the comparable period of FY21.Twenty-three states and one UT have raised a total of Rs 2.27 lakh crore during the period 8 April – 17 Aug ’21 as against the Rs.2.57 lakh crore borrowed in the same period of FY21.
The lower quantum of market borrowings by states so far in FY22 is reflective of the lower expenditure being undertaken by states relative to their receipts. ‘’The market borrowings of the states continue to be lower (by 12%) than that in the comparable period of FY22 and this is reflective of the lower expenditure being undertaken by them,’’ said the Care Ratings in its report released today.
