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Telangana Chief Minister K Chandrasekhar Rao has requested the NITI Aayog to relax annual borrowing limits from 3 per cent of State Gross Domestic Product (GSDP) to 3.5 per cent.
In a letter addressed to Arvind Panagariya, Vice-Chairman, NITI Aayog, Rao said relaxation in borrowing limits should be considered in view of loss of central transfers to the State.
The 14th Finance Commission had also recommended relaxation of annual borrowing limit of 3 per cent of the GSDP if debt – GSDP ratio is not exceeding 25 per cent, interest payments not exceeding 10 per cent of revenue receipts and revenue surplus in the year in which borrowing limits are to be fixed in the immediately preceding year.
“As Telangana fulfils these conditions, I have already requested the Union Finance Minister to ensure the annual borrowing limits of the State for the year 2015-16 are fixed to the extent of 3.5 per cent of GSDP,” the Chief Minister said.
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