PANAJI
The Union finance ministry has permitted cash-starved Goa to borrow more, albeit at a higher cost through open market borrowings (OMBs), ostensibly for satisfactorily meeting the 'One Nation, One Ration Card' reform target.
Goa has been permitted to borrow up to Rs 223 crore and is among five States that got the nod to borrow through OMBs on fulfilling the one-nation-one-ration-card reform targets.
Ease of doing business reform, urban local body/ utility reforms and power sector reforms are three more areas where the Union Finance ministry has set targets which if achieved would entitle the States to more borrowings.
Union finance ministry has granted permission to in all five States -- Andhra Pradesh, Telangana, Karnataka and Tripura are the four other States which qualified with Goa and are collectively permitted to raise Rs 9,913 crore through OMBs.
In view of the unprecedented Covid-19 pandemic the union government had in May allowed States to go for additional borrowings of up to two per cent of their gross State domestic product (GSDP) for 2020-21. This will make up to Rs 4,27,302 crore available to the States.
