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State Development Loans Could Reach Rs. 5 Trillion This Fiscal, ICRA Says
October 27, 2017
The requirement of State Development Loans (SDL) may reach as much as Rs. 5 trillion this fiscal year, an Icra report said.
According to the report, factors like farmer loans waivers and back-ended redemption can increase the borrowing requirement by as much as 3.2 trillion in the second half of the fiscal year compared to Rs. 2.5 trillion from last year.
ICRA (Investment Information and Credit Rating Agency of India Limited ) said that the 42.7% year-on-year growth of SDL in the second quarter can be a result of migration to the goods and service tax that caused a mismatch in revenue and expenditure of state governments.
