The borrowing limit for state governments was unlikely to be raised beyond the current

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4 per cent of their gross domestic product for the current financial year, finance minister Pranab Mukherjee said on Wednesday.

"It has already been decided," he said when asked if the government was considering raising states' borrowing limits.

Borrowing limits had already been raised by a total of 100 basis points, he said.

Mukherjee said federal and state government officials were working on implementing a goods and services tax from the planned deadline of April 2010, the start of the next fiscal year.

"We are trying, let us see. I had some discussions on a particular issue with state finance ministers. I will discuss again in November," he said.