Source : INDIA TODAY NEWS
Delhi Chief Minister Rekha Gupta said on Tuesday that the Delhi government has raised Rs 25,000 crore from the market for capital expenditure in the city. She made the statement while addressing a function on Engineers’ Day.
Gupta said that after becoming chief minister last February, she learnt that the Delhi government had a shared account with the Centre. She said this meant the government could not raise funds for capital expenditure through market borrowings until it had a separate account and the required permission for public borrowing.
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“We planned to arrange funds for capital expenditure through market borrowings but learnt that Delhi could not do it because it did not have a separate account. In the next six months, we got our account separated from the Centre and obtained permission for public borrowing,” she said.
Gupta said that after this, the government took loans of Rs 25,000 crore, and the amount is being spent on capital expenditure in the city. In January, the Delhi government signed a memorandum of understanding with the Reserve Bank of India, enabling the central bank to function as its banker, debt manager and financial agent.
According to the chief minister, the move has paved the way for market borrowing through State Development Loans, automatic investment of surplus cash, professional cash management, and access to low-cost liquidity facilities as prescribed by the Union government and the RBI Act. The funds raised will be used for Yamuna rejuvenation, drinking water supply, health infrastructure, public transport, roads and flyovers.
Gupta said the separation of Delhi’s account from the Centre and the subsequent permission for public borrowing allowed the government to raise Rs 25,000 crore from the market, with the money earmarked for key capital expenditure projects across the city.
– Ends
With PTI inputs
SOURCE :- TIMES OF INDIA
