❖ The Reserve Bank of India (RBI) recently increased the Ways and Means Advances (WMA) limit for Tamil Nadu from ₹3,601 crore to ₹4,582 crore.

 ❖ In recent years, Tamil Nadu has not utilised the short-term borrowing facility.

❖ This is an indication that the State has adequate liquidity.

❖ The RBI provides short-term financial assistance to States in the form of WMA.

❖ This helps states to overcome temporary mismatches in the cash flow of their receipts and payments.

❖ At the end of April 30, 2024, the State government had an investment of ₹3,964 crore in auction treasury bills