In a meeting with secretaries of States and Union territories, Finance Minister Pranab Mukherjee said that there would be no increase in the overall borrowing limits of the state governments.

He pointed out that lack of appropriate infrastructure facilities was a great hurdle in progress of Indian economy. He urged the states for faster implementation of infrastructure projects.

Mukherjee said that the Eleventh Five Year Plan's target of increasing total investment in infrastructure from around 5% of GDP in the base year of the Plan (2006-07) to 9% by the last year (2011-2012), could not be wholly financed from both the Centre and the states. Thus, there was a need to encourage private-public-partnership (PPP).

In the meeting he said that he expected the state governments to be back on the track of fiscal responsibility as soon as the recovery signs become more prominent.

The finance minister asked the states to speed up the implementation of externally aided projects. Several external bodies like World Bank and the Asian Development bank have provided funds to the country. India is estimated to have been paid over Rs. 700 crore during the five year ending 2008-09. With a view to aid India in faster recovery, World Bank approved loans worth $4.3 billion. The loans would enable financing infrastructure development in the country and in supporting some of the state-run banks.

The forum of State Level Bankers' Committee, he added, should be used by the state governments to improve the credit-deposit ratios and ensure effective implementation of government schemes and initiatives.