West Bengal has raised loans worth Rs 11,173 crore or 55 per cent of its enhanced borrowing limits of Rs 20,534 crore so far during this fiscal, according to a Reserve Bank of India (RBI) release.
The State borrowed Rs 6,500 crore during corresponding period last year.
State's share
According to the central bank, West Bengal constitutes nearly 26 per cent of the total borrowings of about Rs 39,000 crore by all States, using RBI auction window, in 2011-12.
On Tuesday, West Bengal auctioned 10-year State development paper to mobilise funds at a cut-off yield of 8.55 per cent, to raise Rs 1,000 crore.
This was the seventh time (fourth market borrowing by Ms Mamata Banerjee government) the State used RBI auction window for borrowing, to meet its revenue deficit, during this fiscal.
Enhanced limit
As per the Fiscal Responsibility and Budgetary Management Act (FRBM), West Bengal was allowed to raise Rs 17,800 crore in 2011-12. However, considering the fund crisis, the Union Government recently enhanced the borrowing limit for year by Rs 2,706 crore.
Considering an accumulated debt burden of Rs 1,86,000 crore till March 2011, utilisation of entire borrowing limit for the year, should increase the accumulated debt of the state to Rs 2,06,000 crore.
Financial Statement
The West Bengal Finance Minister, Mr Amit Mitra, is likely to present a statement on the financial status of the State at the ongoing session of the Legislative Assembly on Friday. It is still not clear whether the State will present a full Budget for the fiscal.
Mr Mitra had on June 25 placed a vote-on-account till September 2011.