New Delhi: A recent report from PRS Legislative, an independent research firm based in Delhi, reveals that Kerala emerged as the frontrunner in off-budget borrowing during the 2021–2022 period. Alongside Kerala, Andhra Pradesh and Telangana also stand out for their significant off-budget borrowing activities.
Off-budget borrowing pertains to funds raised by the government through bonds issued by public agencies, primarily for infrastructure development. This encompasses borrowing by Kerala through the Kerala Infrastructure Investment Fund Board (KIIFB).
However, a noteworthy development occurred in March 2022 when the central government incorporated states’ off-budget borrowing within the overall borrowing limits of the states. Consequently, the report underscores a substantial reduction in off-budget borrowing in light of this regulatory shift.
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