Hyderabad: In a sigh of relief for the Telangana government, the Center on Monday allowed the state to raise a loan of Rs 6,572 crore through the auction of bonds for the last quarter of the financial year, January-March 2022-23.
With the Centre’s approval for the loan, the Telangana government will close the fiscal year with total loans of Rs 36,072 crore.
Through the auction of bonds by the Reserve Bank of India, the Telangana government raised Rs 29,500 crore in the first nine months of this fiscal, from April to December 2022.
During the same period, the Center approved a loan of Rs 12,000 crore for Andhra Pradesh.
According to the Fiscal Responsibility and Budget Management Act based on its Gross State Domestic Product, the Telangana government was eligible to borrow Rs 54,000 crore for this fiscal. The Center curtailed the state on loans, underlying the huge off-budget borrowings. These loans were raised through various corporations with the state government standing guarantee.
The state faced a shortage of Rs Rs 18,000 crore as the Center hewed the loan limit of Rs 36,000 crore for this fiscal year.
