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Question

Which of the following statements is/are not correct with respect to the additional borrowings approved by the Department of Expenditure ?

I.The Department of Expenditure, under the Ministry of Finance, has approved an extra borrowing ceiling of over Rs 50,876.8 crore to 22 States in 2023-24 for National Pension Scheme (NPS) contributions.

II.The normal net borrowing ceiling for states has been fixed at 4 percent of their gross state domestic product (GSDP) which  currently stands at Rs 8.59 trillion. 

III.The ministry also issued approval for raising Rs 6.99 trillion for open market borrowing (OMB) and Rs 69,370.81 crore for availing of negotiated loans during 2023-24.

A Only I Correct Answer Incorrect Answer
B Only I & II Correct Answer Incorrect Answer
C Only III Correct Answer Incorrect Answer
D Only I & III Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

The Department of Expenditure, under the Ministry of Finance, has approved an extra borrowing ceiling of over Rs 60,876.8 crore to 22 States in 2023-24 for National Pension Scheme (NPS) contribution.The normal net borrowing ceiling for states has been fixed at 3 per cent of their gross state domestic product (GSDP). The GSDP currently stands at Rs 8.59 trillion. The ministry also issued approval for raising Rs 6.99 trillion for open market borrowing (OMB) and Rs 69,370.81 crore for availing of negotiated loans during 2023-24.

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