(a) whether the State Government of Kerala has requested the
Union Government for allowing additional market borrowing; and
(b) if so, the details with the action taken thereon?
(a) whether the State Government of Kerala has requested the
Union Government for allowing additional market borrowing; and
(b) if so, the details with the action taken thereon?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a) & (b): Government of Kerala had requested for additional
market borrowings of Rs.300 crores to finance the requirements
for meeting development expenditure. As per the recommendations
of the Eleventh Finance Commission, additional borrowings to any
State over and above the approved borrowing under the Plan is
linked with the Medium Term Fiscal Reform Programme (MTFRP). On
receipt of the requisite material relating to MTFRP from the State
Government, the same was examined and considered in this Ministry.
An agreement between the Government of India and Government of
Kerala was accordingly finalised. Based on the MTFRP of the State
Government, additional allocation of Rs.200 crores for Market
Borrowing Programme has been allowed to the Government of Kerala
for the year 2001-02.