Karnataka borrows ₹2,000 crore through RBI
The Hindu
State had put off taking loans in the first two quarters
After postponing borrowings in the first two quarters, the State Government has raised two state development loans (SDLs) of ₹1,000 crore each through market borrowings in the third quarter of this financial year.
The government raised both these loans on October 5. These market borrowings, known as SDLs, were raised through the Reserve Bank of India (RBI). While the rate of interest on one loan (₹1,000 crore) is 6.88% and another one is 6.93% and they were borrowed for 10 years and 11 years, respectively.
While Karnataka raised these loans in July last year, this year it raised loans in October, which indicated improved financial position of the State in 2021–22. The State’s revenue collections through GST, sales tax, and excise have recorded improvement this year when compared with 2020–21.
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