The state cash surplus with RBI has risen to about Rs 75000 crore, thus the central bank has asked state governments to manage their cash balances more effectively and should issue a quarterly indicative borrowing calendar which will help them in managing their borrowing better, bank said in a statement.
The statement put on website stated a meeting was held between senior officials of the central bank and state finance ministries for annual discussion.
A state secretary who had attended the meeting told, "There was an appreciation for a little bit of lower borrowing than the ceiling given to states. RBI wants the states to reduce their borrowing to the extent of their cash balances"
The states have also been asked to manage their spending pattern in such a way so that their cash levels don’t rise, he added, on condition on anonymity.
In a statement the central bank said, "The deliberations in the conference primarily focused on issues relating to surplus cash balances of the state governments, projections on market borrowings of the state governments and issuance of quarterly indicative calendars for borrowing by the states".
The central bank is already under the pressure of federal government’s recorded Rs 4.57 trillion borrowing targeted for this fiscal, and it is also concerned about the state’s borrowing which amounts to Rs 6.3 trillion this year, the state official informed.
The central bank official pointed out in case corporate credit picks up, also loan given to 3G, it would be difficult for the market to take up the entire government borrowing, he added.
The meeting was attended by Sudha Pillai, a member of the plan panel, Ashok Chawla, finance secretary, Sumit Bose, secretary for asset sales, Shyamala Gopinath, deputy governor and other state finance secretaries.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment