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.
