Liquidity Tightness Limited To Certain States During Second Wave Of Covid-19: ICRA

Indian five hundred rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Liquidity Tightness Limited To Certain States During Second Wave Of Covid-19: ICRA


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ICRA Research Report

Amid the second wave of Covid-19, a fewer six states have availed the special drawing facility in April-May FY22 as compared to 11 states/Union Territories in April-May FY21.

However, the number of states/UT availing ways and means advances and overdraft has risen to eight and seven, respectively, during April-May FY22 from six and two, respectively, during April-May FY21.

At the same time, the aggregate state development loan issuances by the state governments/UT during April-May 2022 declined by nearly 44% in year-on-year terms.

Taken together, these trends suggest that liquidity tightness was limited to a few states during the second wave of Covid-19.

Click on the attachment to read the full report:

ICRA Thematic- State Government Finances July 2021.pdf


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