Kolkata, Aug 24 (PTI) The West Bengal government's market borrowing till August of the current fiscal (FY'22) is higher by 20 per cent to Rs 21,000 crore in comparison to Rs 17,000 crore the state had raised in the same period last year, according to available data.

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This jump is moderate compared to some states like Uttar Pradesh and Assam where borrowings rose by 167 per cent and 120 per cent respectively.

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West Bengal on Tuesday raised Rs 2,500 crore in state development loans at 6.99 per cent in the latest auction held by the Reserve Bank of India, the data showed.

The fundraising was in a 10-year state debt paper.

This totals to Rs 21,000 crore thus far in the current fiscal, it said.

Rating agency CARE said in a note, the weighted average cost of borrowings, across states and tenures, has been at 6.89 per cent. It has risen by 5 basis points since last week.

This increase follows a rise in GSec yields which has been pushed higher in recent days on concerns over the normalisation of monetary policy by the RBI and worries over the paring down of bond purchases by the US Federal Reserve which could prompt an outflow of funds from the Indian markets, it said.

Twenty-three states and a Union Territory have raised a total of Rs.2.38 lakh crore during April 8–August 24, FY '22 as against Rs 2.70 lakh crore borrowed in the corresponding period of FY'21.

(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)