The Jharkhand government has sought a loan of Rs 1500 crore from the Reserve Bank of India for smooth running of development schemes in the State. The loan has been sought under Fiscal Responsibility and Budget Management (FRBM) Act provisions.
Under the FRBM, there is a provision for the states to take loan up to three per cent of GSDP from the Reserve Bank. In this regard, Jharkhand Finance Secretary Prashant Kumar has sent a request letter to the Reserve Bank.
Jharkhand will get this loan at an annual interest rate of 6.92 per cent. The state government will return the loan amount in the next three years. State Finance Minister Radhakrishna Kishore said that this is the right of the state. The loan has been sought under financial management.
He said that the state government will spend the amount on development schemes. He said that there is a provision to take loan from the Reserve Bank to balance the financial management.
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Notably, the Jharkhand government is demanding grant amount from the Center on different schemes. The state government claims that the grant amount of Rs 11,000 crore is pending with the Government of India.
State Finance Minister Radhakrishna Kishore has requested the Central government in this regard. He had recently met Union Finance Minister Nirmala Sitharaman and had demanded the State's share.
A total of 57,000 schemes of Jal Jeevan Mission are pending in the state. Under the mission, a grant of Rs 6,000 crore has not been received from the Central government.
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