TN borrowing according to central govt guidelines: Anbazhagan

Posted By: Pti
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Chennai, Feb 7 (PTI): Facing flak for its huge outstandingdebts of over Rs one lakh rore,the Tamil Nadu government todaysaid it was borrowing according to Central guidelines andother factors, including its repaying capabilities.

''A state government can borrow only according to certaincentral government laid down guidelines. And we are borrowingonly according to such guidelines,'' Finance Minister KAnbazhagan told the state assembly.

Intervening during the debate on the interim budgetpresented by him on Saturday, he said lending agencies alsogive money only after scrutinising the state government''sability to repay, among various other factors.

The government had come under criticism, especially fromprincipal Opposition AIADMK, after the interim budget for2011-12 put the outstanding debts at Rs 1,01,541 crore.

Karunanidhi had on Sunday clarified on this, saying the sumalso included the debts incurred during the Jayalalithaagovernment.

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