Centre eases norms for state borrowings

New Delhi:The Centre has decided to simplify the process of granting additional borrowing limits to the states.
The Finance Ministry said it would process each proposal along with the complete information independently as and when it is received in contrast to the earlier process of bunching all proposals into a single proposal.
During the 4th Meeting of the Governing Council of NITI Aayog on June 17, some states pointed out that the permission accorded by the Department of Expenditure, Ministry of Finance, to eligible states were sometimes delayed due to bunching of proposals received from various states at different intervals into one consolidated approval.
“The Union Government, keeping in view its policy for cooperative federalism, has henceforth decided to simplify the process of approval of such additional borrowing limits requested by states,” the ministry said.