RELAX BORROWING LIMIT TO RAISE ₹10,000CRORE LOAN: CM TO JAITLEY

CHANDIGARH: Punjab chief minister Captain Amarinder Singh has directed the expert panel headed by T Haq to expedite the submission of its report to waive off loans of the farmers in the state. Chairing a meeting of the committee, the CM said he was also simultaneously pursuing the matter with the central government. In a letter to Union finance minister Arun Jaitley, the CM has sought a one-time exemption to the state government from the provisions of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 that restrict its borrowings to a maximum of 3% of the GSDP, which comes to Rs 12,819 crore. Noting that the expected gap in revenues and expenditure in 2017-18 fiscal had been projected at ₹10,273 crore, the CM said he had sought permission from the Centre to allow the state government to raise additional borrowings of Rs 10,000 crore from financial institutions/market for the waiver. A delegation led by state finance minister Manpreet Singh Badal had met the Reserve Bank of India (RBI) deputy governor as well as the chairman, NABARD on July 26-27. But the RBI had said the state would have to arrange funds from its own resources/ borrowings.