• Ministry of Finance informed the states that borrowing by state-owned companies, special purpose vehicles or agencies borrow from the markets, will be considered under the states’ FRBM limit.
• Article 293(3) provides state may not, without the consent of the Government of India, raise any loan if there is still an outstanding part of a loan.
• The normal Net Borrowing Ceiling (NBC) of each State is fixed by the Union Government in the beginning of each financial year.
• Mandatory for states to take Central Govt permission to raise any loans if former liabilities are still pending.