Bengal raises total limit of fiscal deficit to 4 per cent of GSDP in 2022-23 fiscal

According to fiscal responsibility, the state has been allowed to take a loan of Rs 69,000 crore

MP  |  21 Sept 2022 | KOLKATA: The West Bengal Fiscal Responsibility and Budget Management (Second Amendment) Bill, 2022 was passed at the state Assembly on Tuesday paving the way for the total limit of fiscal deficit in the current 2022-23 financial year to be 4 per cent of Gross State Domestic Product (GSDP). 

In terms of the West Bengal Fiscal Responsibility and Budget Management Act 2010, the present limit of fiscal deficit as percentage of GSDP is 3 per cent. 

The 15th Finance Commission under the Department of Expenditure, Ministry of Finance of the union government has decided to fix the net borrowing ceiling for the state at 3.5 per cent of GSDP for fiscal 2022-23. 

Besides, as per the recommendation of the same ministry based on a communication received at the end of June, on the basis of performance in the power sector for the year 2021-22 has allowed the state an additional borrowing of 0.5 per cent of GSDP in the 2022-23 financial year, subject to the amendment. 

"In order to compute the gross borrowing limit for the state for the 2022-23 fiscal, the Finance ministry has requested to amend West Bengal Fiscal Responsibility and Budget Management Act for availing the enhanced borrowing ceiling for this ongoing fiscal. 

So, it was required to fix the limit of fiscal deficit as 4 per cent of GSDP during the year 2022-23 only," state Finance minister Chandrima Bhattacharjee said while tabling the Bill. 

She said that according to fiscal responsibility, the state has been allowed to take a loan of Rs 69,000 crore. But till September 10 of this fiscal, the state has borrowed Rs 16,500 crore. 

http://www.millenniumpost.in/kolkata/bengal-raises-total-limit-of-fiscal-deficit-to-4-per-cent-of-gsdp-in-2022-23-fiscal-493583