Central govt has increased the amount of lending without directly assisting the states

The Finance Minister said the Reserve Bank has increased the amount of advance in the salary and capacity sector for the state by 60 per cent. As a result, states will be able to overdraft money for 3 consecutive weeks.

The Center extended a helping hand to the states in announcing the last day of the Centre’s financial package. On this day, the finance minister has made two big announcements for the states. But the Center is not helping the states with direct money. Instead, the amount of loans given to them is being increased. The Finance Minister said the Reserve Bank has increased the amount of advance in the salary and capacity sector for the state by 60 per cent. As a result, states will be able to overdraft money for 3 consecutive weeks.
 
He further said that the borrowing rate of the states in terms of GDP has been increased from 3 per cent to 5 per cent. The states could have borrowed more than Tk 7.5 lakh crore from this fund earlier, but now it has been increased to Tk 4.28 lakh crore. But this increase is certainly conditional. And this loan could have been taken from the GDP fund at the beginning of the previous year 50%, now it has been increased to 75%. He said states would be able to borrow more if needed.

In addition, the amount of money that has been given to the states. He also gave details of that. He said the state has already been paid Rs 47,036 crore. Tk 4,113 crore has been allocated separately from the Ministry of Health. He also said that Tk 11,092 crore has been given to the state’s disaster management fund.

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