Chennai: 48% of the debt securities of Tamil Nadu in the 22nd financial year 48% long term bonds, in the financial year 2022, the Government of Tamil Nadu Rs. 87,000 crore, according to the Investment Information and Credit Rating Agency of India Limited (ICRA).
As on March 31, 2022, the Government of Tamil Nadu’s growth credit reserves stood at Rs 4.7 lakh crore. According to the ICRA, long-term securities (over 10 years) accounted for 48% of Tamil Nadu’s borrowing mix in fiscal 2022 and no long-term securities were borrowed in fiscal 2018.
To narrow the gap between a state’s revenue and expenditure or, in other words, to meet a fiscal deficit, states borrow from the market by issuing securities called state development loans (SDLs).
Accordingly, in the financial year 2022, the Government of Tamil Nadu has borrowed Rs 87,000 crore. As on March 31, 2022, the balance of SDLs in Tamil Nadu stood at Rs. The ICRA estimates that it will be Rs 4.7 lakh crore. Of this, Rs. 48,000 crore. Of this, 18% is expected to mature in fiscal 2033-2057.
The Government of Tamil Nadu has noted that there has been a significant shift in the installment wise issuance of STLs through Tamil Nadu as it has shifted towards long term securities and this approach has extended the Weight Average Maturity (WAM) of SDLs to 8.65 years at the end of March 2022, which is more than the State average of 7.48 years. , Aditi Nair, Chief Economist, ICRA.