Financial Daily from THE HINDU group of publications
Sunday, Feb 27, 2005

Port Info

Group Sites

Industry & Economy - Economy

`States must decide their borrowing programmes'

Our Bureau

New Delhi , Feb. 26

THE Twelfth Finance Commission (TFC) has recommended that States, like the Central Government, must decide their annual borrowing programmes within the framework of their respective fiscal responsibility legislations.

In its report, which was tabled in Parliament , on Saturday the TFC has recommended the creation of an independent body, like a loan council, to supervise the States as regards the overall limit to their annual borrowings from all sources.

The Loan council, with representatives from the Finance Ministry, the Planning Commission, the Reserve Bank of India and the State Governments, may at the beginning of each year announce the borrowing limits for each State, the TFC report said.

Besides suggesting the de-linking of grants and loans in plan assistance, the commission has also underscored the need to let the States access the markets directly for their borrowing requirements.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Tuticorin trade for an export-oriented Budget

`States must decide their borrowing programmes'
Telemedicine meet to focus on cheaper healthcare
Drug cos hope to cash in on anti-tobacco drives
Bombay HC stops Dabhol stake transfer to GE, Bechtel
Energy majors in fray for captive power projects
Tariff on iron ore for export doubled
UP, Bihar get 30 pc of tax devolutions
Cotton yarn exports begin to dip as made-ups make headway
Creative thinking key to growth: de Bono
AP CM inaugurates Apollo Samudra
Gold retail investment demand remains strong
`Media must play active role in shaping society'
Huge turnout at The Hindu job fair
Youth urged to lead the way
IIT Alumnus award for Lord Bhattacharya

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line