New Delhi, Dec 19 (IANS): The Finance Ministry on Tuesday approved an additional borrowing of Rs 60,876.8 crore to 22 States in 2023-24 for contribution to the National Pension Scheme (NPS).

This will be over and above the net borrowing ceiling for 2023-24.

The normal ceiling for net borrowing by states has been fixed at 3 per cent of their gross state domestic product (GSDP). The GSDP currently stands at Rs 8.59 lakh crore. The ministry also issued approval for raising Rs 6.99 lakh crore for open market borrowing and Rs 69,370.81 crore for availing of negotiated loans during 2023-24.

The finance ministry said it has also allowed extra borrowing to states equivalent to employer and employee share of contribution of its employees, over and above the 3 per cent ceiling.

Earlier in June, the Centre had approved additional financial incentives worth Rs 66,413 crore to 12 states for power sector reforms.

The Union Finance Minister announced the initiative in the Union Budget 2021-22. Under this initiative, an additional borrowing space of up to 0.5 per cent of the GSDP is available to the states annually for a four-year period from 2021-22 to 2024-25.

On Tuesday, the ministry said that it had allowed additional borrowing of Rs 39,175 crore to 12 States in 2021-22 and Rs 27,238 crore to 6 states in 2022-23, linked to performance in the power sector.

For 2023-24, states are eligible to borrow Rs 1.43 lakh crore on the recommendation of the power ministry.