Ministry of Finance Releases Loan of Rs 60,877 Crore for State Pension Schemes; Details here
The Union Finance Minister announced the initiative in the Union Budget 2021-2022. Under this initiative, an additional borrowing limit of up to 0.5 percent of the GSP is available to the states annually for a period of four years from 2021-22 to 2024-25.
New Delhi: To ease the burden on state pension schemes, the finance ministry has given the go-ahead for an additional loan of Rs 60,877 crore to 22 states this year. This special relief, in addition to the usual 3% GSDP loan limit, is specifically meant for contributions to the National Pension System, which will help retiree government employees get their dues, according to a report by news agency IANS.
The Indian GSDP stands at Rs 8.59 Lakh Crore
The GSDP currently stands at Rs 8.59 lakh crore. The ministry has also approved raising Rs 6.99 lakh crore for open market loans and Rs 69,370.81 crore for availing negotiated loans during 2023-2024.
The Finance Ministry said it has also allowed additional loans to states equal to employers’ and employees’ share of its workers’ contribution, on top of the 3 percent ceiling. Earlier in June, the Center had approved additional financial incentives worth Rs 66,413 crore to 12 states for power sector reforms.
The Union Finance Minister announced the initiative in the Union Budget 2021-2022. Under this initiative, an additional borrowing limit of up to 0.5 percent of the GSP is available to the states annually for a period of four years from 2021-22 to 2024-25.
On Tuesday, the ministry said it had allowed additional loans of Rs 39,175 crore to 12 states in 2021-2022 and Rs 27,238 crore to six states in 2022-2023, linked to performance in the power sector. For the period 2023-2024, states are eligible to borrow Rs 1.43 lakh crore on the recommendation of the Ministry of Power.
(With input from agencies)