Bhubaneswar: With the revenue collection by the state government coming down by about 23 per cent in the first quarter of this fiscal compared to the same period in the last year, the Finance department has borrowed Rs 4830 crore from different sources in the last three months.
The department has taken the loan of Rs 3000 crore from open market (banks and other financial institutions) and the rest Rs 1830 crore from the Odisha Mineral Bearing Areas Development Corporation (OMBADC), a TOI report said quoting the finance department sources.
Since the COVID-19 management and efforts to generate employment would require huge expenditure, there would be need for more borrowing. The revenue collection is unlikely to improve in the next quarters due to the pandemic, said the sources.
Though states are allowed to borrow upto 3 per cent of gross state domestic product (GSDP), the Central government has increased the ceiling to 5 per cent because of the fall in revenue collection in the effect of COVID-19.
Odisha has not borrowed such a huge amount in the first quarter of the fiscal in recent years.
Comments are closed.