Ways and Means Advances Limit for States reduced to Rs 47,010 cr

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Ways and Means Advances Limit for States reduced to Rs 47,010 cr
02 Apr 2022
6 min read

News Synopsis

Considering the improving situation regarding Covid-19 infection in the country, the Reserve Bank of India on Friday informed that the Ways and Means Advances (WMA) for states and Union Territories will be reduced to Rs 47,010 crore from Rs 51,560 crore. RBI gives WMA to the government to tide over any mismatch in receipts and payments. During the pandemic, RBI raised the WMA limit to Rs 51,560 crore for all states which was applicable till the 31st of March, 2022. Following the decline in the number of covid cases in the country, the Advisory Committee on Ways and Means Advances to State Governments recommended to revert the WMA limits and timelines for Over Draft (OD) for state governments / UTs. It said: ''The WMA limit for State Governments/UTs will be Rs 47,010 crore.'' These changes will be applicable from April 1, 2022. The Reserve Bank of India, further informed that the Special Drawing Facility (SDF) which is availed by state governments/ UTs shall will continue to be linked to the quantum of their investments in marketable securities issued by the Government of India, including Auction Treasury Bills (ATBs).

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