MINISTER OF STATE FOR FINANCE (SHRI NAMO NARAIN MEENA)
(a) The State-wise total liabilities and share of market loans, borrowings
from National Small Saving Fund and loans taken from the Union Government in it,
respectively during the years 2009-10, 2010-11 and 2011-12 as reflected in
Statement 26 of Reserve Bank of India Annual Report `State Finances: A study
of Budgets of 2011-12` are given in the annexed Table-I. Liabilities at the
end of fiscal 2011-12 are carried over as opening liabilities for the year 2012-13.
(b) The purpose vis-a-vis utilisation of each category of loans is not
maintained by Ministry of Finance. However, the borrowings made by the States
is one of the sources to finance for the Annual Plans of the States. The States`
are required to plan their borrowing programme with respect to instruments
prudently. The utilisation of funds for the purposes they are meant is subject
to control of State and audit by Comptroller & Auditor General (C&AG).
(c) The State-wise Gross State Domestic Product (GSDP) estimates for the
years 2009-10, 2010-11 and 2011-12, used for calculating Net Annual Borrowing
Ceilings for the States, and liabilities to GSDP ratio for the same period is
given in the annexed Table -II.
(d) The Thirteen Finance Commission (FC-XII!) has worked out a fiscal
consolidation road map for States requiring them to eliminate revenue deficit and
achieve a fiscal deficit of 3 per cent of their respective GSDP latest by 2014-15.
FC-XIII has also recommended the State-wise path for debt as the percentage of GSDP
and a combined States` debt target of 23.4 per cent of GDP to be reached during this
period. The States are required to amend or enact their Fiscal Responsibility and
Budget Management Act (FRBMA) to conform to these recommendations. As per the
information available, all the States have in place FRBMA conforming to FC-XIII
targets.
