Latest News | Bengal Govt's Market Borrowing Down 60pc in April-May

Kolkata, May 11 (PTI) The West Bengal government's market borrowing till May 11 of the current fiscal (FY'22) is lower by 60 per cent to Rs 2000 crore in comparison to Rs 5,000 crore the state had raised in the same period last year, according to available data.

However, in FY'21, the country was into a flash lockdown due to the first wave of Covid-19 pandemic and in this year, assembly elections were held in eight phases between March 27 and April 29 in the state.

Analysts expect that borrowing from the window of the Reserve Bank of India could see a spike in demand as the state is affected by the second wave of coronavirus.

Sources said that the state has indicated to raise around Rs 14,000 crore in the first quarter (April-June '21) period of the current fiscal against Rs 10,000 crore raised in the same period of FY'21.

Interestingly, CARE's rating analysis revealed that the total state government borrowing during the 8 April-11 May'21 period has been 54 per cent less than the borrowings in the corresponding period of last year.

Only 12 states and one union territory have raised a total of Rs 37,200 crore so far in FY'22 as opposed to 22 states and one union territory that raised Rs 81,005 crore in the comparable period of FY21.

In FY'21, 28 states and two union territories cumulatively raised a total of Rs 7.98 lakh crore via market borrowing, 26 per cent more than that of Rs 6.35 lakh crore in FY'20.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)