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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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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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