new delhi some states have protested the centres move to link the increase in their borrowing limit to conditions such as reforms saying it sets a bad precedent as the union government shot off a letter to the states detailing the contours of the limit increase planfinance minister nirmala sitharaman while announcing the fifth tranche of the atmanirbhar bharat package had increased the states borrowing limit from 3 of gsdp to 5 but linked them to four reforms such as implementation of one nation one ration card system ease of doing business reform urban local bodyutility reform and power sector reformsthis is undermining the autonomy of elected governments of states by the centre to make decisions on allocation of borrowings this is again another antifederalist move west bengal finance minister amit mitra told toi adding it will set a new precedence of what he called authoritarian intervention of the centre on how states can borrow and spend the fundsmore on covid19coronavirus pandemic complete coveragelockdown 30 whats allowed and whats not in the three zonesits time to mask up and stay safe join tois maskindia campaignmhas guidelines for home isolationtrust the newspaper for your daily verified newsmitra said that several states are expected to protest the move and are likely to convene a meeting to discuss the issue and draw up a strategy he said chhattisgarh punjab kerala rajasthan and others are expected to be part of the meeting to protest the movethe devastating impact of the covid19 pandemic has battered state finances and they had been pressing the centre to increase the borrowing limit to help them raise money from the market the centres move to raise the states borrowing limit will make available funds worth rs 430 lakh crorethe centre in its letter to states said the weightage of each reform is 025 of gsdp totalling 1 the remaining borrowing limit of 1 would be released in two instalments of 05 each first immediately to all the states as untied and the second on undertaking of at least three of the four reforms measureskerala finance minister thomas isaac had said on sunday that the state protests the making of additional loans conditional centre has set a bad precedent and in future severe conditions may be imposed on even normal loans he said adding that central government had included in the terms of reference of the 15th finance commission imposition of conditions on the market borrowings of state governments but the panel refused to bite the bait now centre has used the pandemic crisis to introduce conditions on states market borrowings isaac had said