(a) whether RBI has enhanced the ways and means advance limit of
the State Government;
(b) if so, the details of the guidelines issued by the RBI to
States in this regard;
(c) whether this step was taken on the recommendation of informal
group of State Finance Secretaries; and
(d) if so, the other recommendations of the group accepted by the
RBI in regard to finance the State Governments?
MINISTER OF STATE IN THE MINISTRY OF FINANCESHRI BALASAHEB VIKHE PATIL
(a) to (d): Based on the recommendations of the informal group
of State Finance Secretaries, the RBI has enhanced the Ways and
Means advance limit as incorporated in the `WMA Scheme, 2001`
w.e.f. February 1,2001.
The main features of the WMA Scheme, 2001 are as under:
i) The normal WMA limit has been enhanced w.e.f. February 1,2001.
ii) The Special WMA continues to be linked to the investments made by the State Governments in the Government of India Securities.
iii) Overdraft Regulation Scheme which will be applicable to the State Governments w.e.f. February 1,2001 is as under: