<h1>State Seeks Rs 7,900 Crore Extra Borrowing and Restoration of Rs 4,300 Crore Deductions Under Fiscal Rules</h1> A southern state has requested the central government to permit additional borrowing of approximately Rs 7,900 crore for the current fiscal year, citing significant fiscal pressures ahead of a major festival. The state also seeks restoration of around Rs 4,300 crore previously deducted due to adjustments related to contributions to a Guarantee Redemption Fund and shortfalls in tax revenue sharing. The state highlights that its debt-to-GSDP ratio has improved but faces challenges due to deductions impacting its fiscal health and expenditure commitments. It argues that costs incurred for national highway land acquisition, funded through state borrowing, should be treated as additional capital expenditure and not deducted from its borrowing limit. The state requests permission to borrow Rs 6,000 crore without conditions above the central government's net borrowing ceiling and to raise Rs 1,877 crore through open market borrowing, reflecting changes in its economic output. The state urges urgent restoration of deducted funds to maintain fiscal stability.