‘States must be allowed additional 2 per cent borrowing unconditionally during FY-22’
January 22, 2021
Amit Mitra, West Bengal Finance Minister×
WB urges Centre for change in the date of devolution of the State’s share in Central taxes
West Bengal has asked the Centre to allow States to borrow additional 2 per cent of Gross State Domestic Products (GSDP) unconditionally during FY 2021-22 starting April 1. It also wants date of devolution to change.
“Imposition of conditions for borrowing further limits the fiscal space for States,” West Bengal Finance Minister Amit Mitra wrote in a letter to Finance Minister Nirmala Sitharaman. Last year, the Centre permitted additional two per cent borrowing, half of that unconditionally while remaining was attached to four reforms such as PDS and power, . Further, he said that State Government will need to invest more in capital sector projects to boost the economy.