Question : Loans Covered under FBRM Act

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?

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.
********


Annex to reply to part (a) to (c) of Lok Sabha Unstarred question no. 1820 for 02.03.2020
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 4615.10 5262.40 5117.00
2 Arunachal Pradesh 559.70 338.40 40.20
3 Assam 2164.20 3468.70 4309.70
4 Bihar 6827.20 7919.10 9422.30
5 Chhattisgarh 3889.20 4566.80 5116.10
6 Goa 688.10 659.00 730.30
7 Gujarat 11837.20 14690.60 17075.40
8 Haryana 3492.70 3583.30 4670.90
9 Himachal Pradesh 2491.60 2626.30 2840.60
10 J & K 3725.60 3601.20 3522.50
11 Jharkhand 6070.40 7416.40 9458.40
12 Karnataka 4289.10 4760.30 4941.90
13 Kerala 5208.10 5093.20 5006.90
14 Madhya Pradesh 9569.30 12284.00 15061.60
15 Maharashtra 8173.50 12242.80 18721.90
16 Manipur 326.30 446.80 476.50
17 Meghalaya 375.10 517.80 711.40
18 Mizoram 502.60 564.80 655.60
19 Nagaland 658.00 594.00 519.50
20 Odisha 11031.30 14526.40 17612.00
21 Punjab 31422.90 30269.60 29310.90
22 Rajasthan 9413.00 10551.90 11243.60
23 Sikkim 308.00 302.70 293.70
24 Tamil Nadu 9498.90 10502.70 11220.90
25 Telangana 4154.20 4025.60 3468.90
26 Tripura 951.80 920.50 984.40
27 Uttar Pradesh 58817.30 62294.30 63452.40
28 Uttarakhand 3784.90 3980.20 4075.50
29 West Bengal 7031.90 7679.40 8171.30
Total 211877.20 235689.20 258232.30
Source: Reserve Bank of India report titled “State finances: A study of budgets of 2019-20”
*******