All States, except eight, have budgeted for a revenue surplus during 2007-08. Third, open market borrowings of the State Governments have been conducted entirely through the auction route during 2006-07 and 2007-08 (so far).
The spreads for almost all the States, over the yields of Central Government securities of comparable maturity during 200607 and 2007-08 so far, has remained well below 50 basis points (spread fixed in the case of tap issuances), reflecting favourable market perception.