Hyderabad: The Telangana government has submitted a proposal to the Reserve Bank of India (RBI) seeking loans worth Rs 8,578 crore for the new quarter between October to December.
The state government amassed Rs 62,000 crore in the first half of this fiscal year. It has requested the RBI to provide a loan worth 3,500 crore for the month of October. The state government’s request comes at a time when Telangana is facing heat in regard to the Centres’ loan calendar cuts. They total around Rs 8,814 crore this fiscal year.
Along with October, bonds will be raised on a fortnight basis for the next two months. The bonds to be raised in the month of November are worth Rs 3,000 crore, and that in the month of December will be 2,078 crore.
Telangana has proposed raising Rs 53,000 crore as bonds in the budget document (2022-23), but only managed to raise Rs 19,500 crore so far reported the Times of India. It is to be noted that the Union finance department and the Telangana government have been at odds in terms of loans.
Earlier this year the central body stated that off-budget borrowings would be viewed as part of Fiscal Responsibility Budget Management (FRBM) rules to be adhered to by the states. As per FRMB rules, states have to limit the total loan burden to 3 percent of the GDP.
Follow on Twitter | Posted by Mohammed Baleegh | 
