Centre urged to fix borrowing limits for states on capacity

Bengaluru : The Karnataka government today urged the Planning Commission to advise the ministry of finance to set the borrowing limit for each state based on their debt sustaining capacity rather than applying the fiscal roadmap mechanically irrespective of the debt level of each state. “The financial position of the state has improved due to consistent resource mobilisation efforts. Karnataka has the capacity to sustain a larger quantum of debt," chief minister B S Yeddyurappa said.

He was speaking after making a presentation on Karnataka at the inaugural session of the two-day regional consultation of the Planning Commission with southern states on the Approach Paper to the 12th five-year plan, here on Friday. He expressed confidence that the state would be able to raise the resources to achieve the targeted growth of 9 per cent to 9.5 per cent economic growth, which is likely to be projected during the 12th Five-Year Plan period by the Planning Commission.