Thiruvananthapuram Aug 6: The state government has decided to borrow Rs 2, 500 crore from the open market to meet the expenses of Onam festival.
Around Rs 7, 000 crore is required for providing salary and pension during the season of Onam. The government also plans to borrow Rs 1, 000 crore by this month.
This is within the borrowing limit allowed by the Centre. The funds are collected from banks through the debentures issued by the Reserve Bank. The amount has to be repaid in a period of 10 years.
The government has borrowed Rs 1, 000 crore from the open market last month as well. Money is borrowed during the Onam season every year as expenses escalates immensely. Debentures of Rs 2, 500 crore are issued which will be auctioned on August 7.
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