The Centre is mulling over extending the deadline for states to repay their "off-budget" borrowings until FY27. This would provide more headroom to states, whose borrowings for FY24 are expected to rise by 28% to ₹6.7 lakh crore, to tap the market as they deal with the impact of Covid-19. The Centre cleaned up its own budget last year by repaying all off-budget borrowings, and many states have begun to do the same since the Centre subjected the off-budget debt to strict oversight.