MUMBAI: At Rs 5,55,900 crore, the states whose finances have been ravaged by the pandemic, have snapped up as much as 43.5 per cent more debt from the market during the first nine months of the current fiscal with the conclusion of the last auction on Tuesday when 13 of them borrowed Rs 18,900 crore.

According to an analysis by rating agency ICRA, states had borrowed Rs 3,87,400 crore in the first nine months of FY20. But given the steep fall in redemptions to Rs 95,400 crore during the first three quarters from Rs 1,06,800 crore of FY20, net issuance rose by an even higher 64.1 per cent during the first three quarters of FY21 to Rs 4,60,400 crore from Rs 2,80,600 crore in FY20.

What is significant is that over 65 per cent of these Rs 5.55 lakh crore borrowing have been lapped up by just five top borrowing states with Maharashtra borrowing Rs 39,500 crore more, Karnataka Rs 25,900 crore more, Tamil Nadu Rs 16,600 crore more, Andhra an additional Rs 15,300 crore and Telangana drawing down Rs 13,400 crore more during these months. This means that these five states account for more than 65 percent of the incremental market borrowing in the first nine months, according to the ICRA analysis.

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