Question 3100
Which of these state assemblies have passed a bill that will enable the government to raise the borrowing ceiling by 0.50 percent of the state's GSDP?
Answer
Assam
Why?
The correct answer is Assam. The Assam Assembly has passed a bill that will enable the government to raise the borrowing ceiling by 0.50 percent of the state's GSDP (Gross State Domestic Product). Union Finance Ministry had informed Assam that during 2021-22, the state will be allowed the Net Borrowing Ceiling (NBC) of four percent of the projected GSDP for the fiscal. At the beginning of the financial year 2020-21, the state was allowed borrowing permission based on 3.50 per cent of GSDP.
