The total borrowings by the reporting NBFCs grew from ₹ crore as at end March 2009 to ₹ crore as at end March 2014. There has been sizable growth, very high leverage, increasing dependence on public funding and increasing interconnectedness, while the regulations on NBFCs are lighter than that for the rest of the financial sector. 8.
Even though there was a moderate impact on States’ own tax revenue and tax devolution from the Centre (as ratio to GSDP) due to overall macroeconomic slowdown observed in the Indian economy in 2009–10, revenue expenditure increased due to higher administrative expenditures arising out of revised pay structure.