Govt borrows Rs 200 cr to improve infrastructure -Herald

Govt borrows Rs 200 cr to improve infrastructure September 21, 2012 PANJIM: Two days ago, the Manohar Parrikar government went for Rs 200 crore market borrowing, which it says would be utilized for infrastructure development and social sector schemes. The borrowing which is a part of Reserve Bank of India’s essential borrowing scheme is the second for the current financial year. The initial one of Rs 150 crore was made during the first quarter. A top government official said that the borrowing was nothing unusual. Goa was oversubscribed by various banks, which means banks were enthusiastic about lending money to the State government, he claimed. According to the Planning Commission, Goa’s annual borrowing level is fixed at Rs 1,300 crore. Goa was to borrow upto Rs 600 crore by September this year but the state government has preferred to borrow less. Officials however claimed that the government’s financial situation is ‘sound’. Parrikar is expected to introduce additional resource mobilization measures in the days to come to tide over the revenue loss caused due to restrictions on mining. It is projected that the state would lose approximately Rs 300 crore which it would have earned on the royalty on the iron ore exported, though this pales in comparison to the Shah Commission Report estimate of the state being looted to the tune of Rs 35,000 crore by the illegal mining in Goa. http://oheraldo.in/News/Local%20News/Govt-borrows-Rs-200-cr-to-improve-infrastructure/64657.html