Lok Sabha Question No. 1820 (UNSTARRED), answered on 2020-03-02
Subject: Loans Covered under FBRM Act
Ministry: FINANCE
Asked by: Sanjay Kumar Bandi, Komati Reddy Venkat Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA

## UNSTARRED QUESTION NO.  1820 TO BE ANSWERED ON MONDAY, 02 nd  March, 2020/12 Phalguna, 1941 (SAKA)

## Loans covered under FBRM Act

## 1820.       SHRI BANDI SANJAY KUMAR: SHRI KOMATI REDDY VENKAT REDDY:

Will the Minister of FINANCE be pleased to state:

- a) whether the Union Government is aware of loans taken by the State Governments from Central Government Corporations like PFC, HUDCO etc.;
- b) if so, the details thereof, State-wise;
- c) whether these loans  come under the Fiscal Responsibility and Budget Management (FRBM) Act and if so, the details thereof, State-wise;
- d) whether any State Government has crossed the borrowing limit under the FRBM Act with these loans and if so, the details thereof, State-wise; and
- e) whether any action has been taken on such States which have crossed the FRBM limit and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a) to (c) Government of India issues borrowing permission to States under Article 293 (3) of Constitution  of  India,  which  inter  alia  includes  Negotiated  Loans  from  financial  institutions  like NABARD, PFC, HUDCO etc. These loans are within the ceiling prescribed under respective State FRBM  Act.  State-wise  details  of  outstanding  loans  of  the  State  Governments  from  banks  and financial institutions including NABARD, PFC, HUDCO etc. are at Annex .

(d) & (e) Net  Borrowing  Ceiling  (NBC)  of  the  States  is  fixed  anchoring  the  Fiscal  Deficit target of 3 percent of projected GSDP  based on the calculation prescribed under the recommendations of Fourteenth Finance Commission (FFC) and borrowing permission is issued on the basis of budgetary estimates submitted by the States. Any over/ under borrowing by States is adjusted in the  year  in which actual  figures are available.  None  of the States  reported  exceeding borrowing limit allowed by the Central Government.

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## State-wise details of outstanding loans of the State Governments from banks and financial institutions including NABARD, PFC, HUDCO etc.

(Rs. In crore)

| S. no.   | States            |   2017-18 (FA) |   2018-19 (RE) |   2019-20 (BE) |
|----------|-------------------|----------------|----------------|----------------|
| 1        | Andhra Pradesh    |         4615.1 |         5262.4 |         5117   |
| 2        | Arunachal Pradesh |          559.7 |          338.4 |           40.2 |
| 3        | Assam             |         2164.2 |         3468.7 |         4309.7 |
| 4        | Bihar             |         6827.2 |         7919.1 |         9422.3 |
| 5        | Chhattisgarh      |         3889.2 |         4566.8 |         5116.1 |
| 6        | Goa               |          688.1 |          659   |          730.3 |
| 7        | Gujarat           |        11837.2 |        14690.6 |        17075.4 |
| 8        | Haryana           |         3492.7 |         3583.3 |         4670.9 |
| 9        | Himachal Pradesh  |         2491.6 |         2626.3 |         2840.6 |
| 10       | J & K             |         3725.6 |         3601.2 |         3522.5 |
| 11       | Jharkhand         |         6070.4 |         7416.4 |         9458.4 |
| 12       | Karnataka         |         4289.1 |         4760.3 |         4941.9 |
| 13       | Kerala            |         5208.1 |         5093.2 |         5006.9 |
| 14       | Madhya Pradesh    |         9569.3 |        12284   |        15061.6 |
| 15       | Maharashtra       |         8173.5 |        12242.8 |        18721.9 |
| 16       | Manipur           |          326.3 |          446.8 |          476.5 |
| 17       | Meghalaya         |          375.1 |          517.8 |          711.4 |
| 18       | Mizoram           |          502.6 |          564.8 |          655.6 |
| 19       | Nagaland          |          658   |          594   |          519.5 |
| 20       | Odisha            |        11031.3 |        14526.4 |        17612   |
| 21       | Punjab            |        31422.9 |        30269.6 |        29310.9 |
| 22       | Rajasthan         |         9413   |        10551.9 |        11243.6 |
| 23       | Sikkim            |          308   |          302.7 |          293.7 |
| 24       | Tamil Nadu        |         9498.9 |        10502.7 |        11220.9 |
| 25       | Telangana         |         4154.2 |         4025.6 |         3468.9 |
| 26       | Tripura           |          951.8 |          920.5 |          984.4 |
| 27       | Uttar Pradesh     |        58817.3 |        62294.3 |        63452.4 |
| 28       | Uttarakhand       |         3784.9 |         3980.2 |         4075.5 |
| 29       | West Bengal       |         7031.9 |         7679.4 |         8171.3 |
|          | Total             |       211877   |       235689   |       258232   |

Source: Reserve Bank of India report titled 'State finances: A study of budgets of 2019-20'