Chennai: Union Finance Ministry has given consent for Tamilnadu government to borrow additional 0.5% of gross state domestic product (GSDP) amounting to Rs 9627 crore for financial year 2020-21.
This was revealed by Minister of State for Finance Anurag Singh Thakur in a written reply to a question raised by DMK MP P Wilson in Rajya Sabha.
“The Union Government has received a request from the Government of Tamilnadu for special grant of Rs. One lakh crore to all the States, including an amount of Rs 9000 crore to the State of Tamilnadu,” he said.
The Minister pointed out that the States have been allowed to do additional borrowing for financial year 2020-21 as a part of Aatma Nirbhar Bharat Abhiyaan package.
The Centre has increased net borrowing limits of State governments for FY2020-21 to 5 per cent GSDP from 3 per cent of GSDP. However, only 0.5 per cent increase is unconditional and the remaining is subject to fulfilling certain conditions.