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I had a look at the Delhi Government Budget for the year 2019-20 (see here: http://prsindia.org/parliamenttrack/budgets/delhi-budget-analysis-2019-20), and was wondering about the composition of the borrowing component.

Can state and UT governments issue bonds? Or do they borrow only from banks, and not from the general public?

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To give you a simple answer Yes! State govt can issues bonds and are publicly traded on BSE. Here are specifically Delhi issued bonds. Not sure how authenticated are these at IndiaMart.

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