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      Question

      Which of the following term is used when net borrowing

      ceiling for states has been fixed at 4% of the projected GSDP for FY 2021-22?
      A State Loan Limit Correct Answer Incorrect Answer
      B State Debit Limit Correct Answer Incorrect Answer
      C State Credit Limit Correct Answer Incorrect Answer
      D State Borrowing Limit Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      For FY 2021-22, the net borrowing ceiling for states has been fixed at 4% of the projected GSDP (about Rs 8.46 lakh crore), based on recommendations of the Fifteenth Finance Commission.

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