With just a few months likely before Delhi heads for Assembly elections, the state government has sought to borrow Rs 10,000 crore from the National Small Savings Fund (NSSF) to meet its expenditure for the current financial year, 2024-25.

The proposal, being sent to the Union Ministry of Finance has been signed by Chief Minister Atishi despite objections by the state’s finance department, which expected lower expenditure due to the Model Code of Conduct (MCC). In fact, it said Delhi should quit from the NSSF.

Besides Delhi, only three other states — Arunachal Pradesh, Kerala and Madhya Pradesh — borrow from NSSF, which comprises collections under small saving schemes, net of withdrawals. Most states have decided to stay out of NSSF since these loans are more expensive than market borrowings.

In a September 2 note, Delhi’s Principal Secretary (Finance) Ashish Chandra Verma is learnt to have objected to the option of taking loans from the NSSF this fiscal.