The Reserve Bank of India (RBI) panel recommends raising the aggregate limit on states’ Ways and Means Advances (WMA) by 11.2% to Rs 67,839 crore. The figure reflects the panel’s suggested revision to the ceiling governing short-term liquidity support provided to states.
The recommendations are described as building on work by a previous advisory committee chaired by Sudhir Shrivastava. One report notes that the RBI previously revised states’ aggregate WMA limits from Rs 32,225 crore to Rs 47,010 crore, effective from April 1, 2022. Another source says the proposed change follows analysis of states’ fiscal parameters and that revenue receipts are identified as a more appropriate basis for calculating the limits.
Taken together, the outlets agree on the recommended increase and the new aggregate WMA ceiling. They also align on the idea that the revision is linked to updating how states’ financial position is assessed, though the emphasis differs between historical limit changes and the methodology used for the adjustment.
