New Delhi, Sept. 29 -- States concentrating a large part of their annual market borrowing in the January-March quarter could push up borrowing costs for all states, an RBI-appointed committee has said, calling for borrowings to be spread more evenly through the year.

The observation was made in the "Report of the Advisory Committee on Ways and Means Advances to State Governments", released by the Reserve Bank of India (RBI).

The committee noted that some states tend to raise a large share of their annual market borrowing during the final quarter of the financial year. States have cited reasons such as higher expenditure in the second half of the year, the need to utilise borrowing permission received from the Centre, and maintaining ade...