Bengal may auction 10-year development paper

The West Bengal Government plans to auction 10-year State development paper to mobilise funds to the tune of Rs 800 crore, according to a Reserve Bank of India (RBI) release. Just less than a month ago, the State had borrowed funds of about Rs 1,300 crore through State development loans. 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.