Lok Sabha Question No. 2109 (UNSTARRED), answered on 2015-12-11
Subject: Raising of Debts by the State
Ministry: FINANCE
Asked by: DUSHYANT SINGH

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE PLAN FINANCE-I DIVISION

## LOK SABHA UNSTARRED QUESTION NO. 2109

TO BE ANSWERED ON FRIDAY THE 11 th  DECEMBER 2015/20 AGRAHAYANA, 1937 (SAKA)

## RAISING OF DEBTS BY THE STATE

## 2109.  SHRI DUSHYANT SINGH :

Will the Minister of FINANCE be pleased to state:

- a)  the Gross State Domestic Product (GSDP) of all the States/UTs at both market price and factor cost;
- b)  the details of the present policy governing the raising of debts by the States;
- c)  whether the Government is intending to allow 3% of borrowing on the GSDP at market price in place of GSDP which is at factor cost;
- d)  if so, the details thereof and if not, the reasons therefor; and
- e)  whether  the  Government  is  presently  allowing  or  going  to  allow  the  States  to  raise additional borrowing, if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI JAYANT SINHA)

- (a): The details of Gross State Domestic Product (GSDP) estimates of all the States/UTs at factor cost with base year 2004-05, at current prices (as on 31.07.2015) are at Annex. The estimates of GSDP at market price are not being compiled by States/UTs on regular basis.
- (b) to (d): The  annual  Net  Borrowing  Ceiling  (NBC)  is  being  fixed  by  the  Central Government  based  on  a  road  map  for  achieving  fiscal  deficit  targets  as  laid  down  by successive Finance Commissions.
- (ii) As  recommended  by  Fourteenth  Finance  Commission  (FFC),  the  NBC  for  all  the States for 2015-16 have been fixed by adopting annual average growth rate of GSDP in the years  2013-14  ( t -2),  2012-13  ( t -3)  and  2011-12  ( t -4)  as  per  State  estimate  of  GSDP  (at current price) published by CSO and applying the same on the base GSDP of year 2013-14 ( t -2)    to  determine  the  projected  GSDP of years 2014-15 ( t -1)  and  2015-16 ( t ).  The  base

Fiscal  deficit  target  of  3%  have  been  applied  on  State  specific  GSDP  estimated  for  year 2015-16 ( t) to  arrive  at  Net  Borrowing  Ceilings  of  each  State.  The  estimates of  GSDP  at market price are not published by the CSO.

(iii) The  NBC  covers  all  sources  of  borrowings,  including  Open  Market  Borrowings, Negotiated  Loans  from  financial  institutions,  National  Small  Saving  Fund  loans,  Central Government loans  including  EAPs,  other  liabilities  arising  out  of  public  account  transfers under  small  savings,  Provident  funds,  Reserve  Funds,  Deposits,  etc.,  as  reflected  in statement 6 of the State's Finance Accounts.

(e): The Central Government has approved Ujwal DISCOM Assurance Yojana (UDAY) a scheme for the Financial Turnaround of Power Distributions Companies (DISCOMs) with an objective to improve the operational and financial efficiency of the State DISCOMs. Under the Scheme, States shall take over 75% of DISCOM debt as on 30.09.2015 over two years - 50% of DISCOM debt shall be taken over in 2015-16 and 25% in 2016-17 by issuing NonSLR Bonds. The debt so taken over by the States under the scheme shall not be counted against the Fiscal Deficit limit of respective State in the financial years 2015-16 and 201617. The States are therefore allowed to raise additional borrowings under UDAY Scheme during 2015-16 and 2016-17.

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## Annex referred to in reply to part (a) of Lok Sabha Unstarred Question No. 2109 for answer on 11.12.2015

Rs. in Crore

| S. No.   | State\UT                  | 2012-13   | 2013-14   |
|----------|---------------------------|-----------|-----------|
| (1)      | (2)                       | (3)       | (4)       |
| 1        | Andhra Pradesh            | 410068    | 464184    |
| 2        | Arunachal Pradesh         | 11836     | 13545     |
| 3        | Assam                     | 138401    | 159460    |
| 4        | Bihar                     | 293616    | 343663    |
| 5        | Chhattisgarh              | 165641    | 185682    |
| 6        | Goa                       | 42407     | 48897     |
| 7        | Gujarat                   | 658540    | 765638    |
| 8        | Haryana                   | 341351    | 388917    |
| 9        | Himachal Pradesh          | 73710     | 82585     |
| 10       | Jammu & Kashmir           | 76916     | 87570     |
| 11       | Jharkhand                 | 151655    | 172773    |
| 12       | Karnataka                 | 522673    | 614607    |
| 13       | Kerala                    | 347841    | 396282    |
| 14       | Madhya Pradesh            | 361270    | 434730    |
| 15       | Maharashtra               | 1322222   | 1510132   |
| 16       | Manipur                   | 12697     | 14324     |
| 17       | Meghalaya                 | 19009     | 21922     |
| 18       | Mizoram                   | 8363      | 10297     |
| 19       | Nagaland                  | 15676     | 17749     |
| 20       | Odisha                    | 251220    | 272980    |
| 21       | Punjab                    | 285119    | 317556    |
| 22       | Rajasthan                 | 470178    | 517615    |
| 23       | Sikkim                    | 10473     | 12377     |
| 24       | Tamil Nadu                | 744859    | 854238    |
| 25       | Telangana                 | 347082    | 391751    |
| 26       | Tripura                   | 22697     | 26810     |
| 27       | Uttar Pradesh             | 780399    | 862746    |
| 28       | Uttarakhand               | 108250    | 122897    |
| 29       | West Bengal               | 603311    | 706561    |
| 30       | Andaman & Nicobar Islands | 5633      | 6150      |
| 31       | Chandigarh                | 25046     | 29076     |
| 32       | Delhi                     | 334915    | 391125    |
| 33       | Puducherry                | 16795     | 21077     |

Note: The UTs namely, Dadra & Nagar Haveli, Daman & Diu and Lakshadweep do not prepare the estimates of GSDP.