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Borrowing Limit Of States Increased From 3% Of GSDP To 5%

  • 03 Jul 2020

  • The Central Government has increased the borrowing limit of states from 3% of gross state domestic product (GSDP) to 5%.
  • But part of this borrowing will be linked to specific reforms in four areas: 
  • Universalisation of ‘One Nation One Ration card’
  • Ease of Doing Business
  • Power distribution, and 
  • Urban Local Body revenues.