States rely on market borrowings to fund their spending: Icra

MUMBAI: State governments are increasingly relying on market borrowings to fund their spendings, but repayment pressures are likely to be limited in the medium term despite increasing levels of debt stock, a study published by ratings firm Icra has said.

“The long tenure of loans from the NSSF ( National Small Savings Fund) limits the redemption pressure,” said Jayanta Roy, senior vicepresident and co-head, corporate sector ratings, Icra.