Telangana on the brink of bankruptcy due to Central Govt, RBI curbs

Hyderabad: Telangana is on the brink of bankruptcy and in view of the central government and Reserve Bank of India curbs it is facing great financial difficulties. Under the permission given by the RBI to obtain a loan, Telangana has succeeded in getting a mere Rs. 4000 crore at the beginning of the current month.

The state was not allowed to participate in the bond auction scheduled for June 14 and June 28 which is leading to the state being on the brink of financial bankruptcy.  

In the Bond auction to be held on the 28th, the state may get Rs.1000 crore. Even if the RBI allows the government to participate in the auction the state government shall only be getting merely 35% of the state’s total need of Rs.15000 crores.

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It is being said that the state government till now has succeeded in getting 26.7 percent of the amount required.

The RBI instructed the states to decrease the subsidy given under the various welfare schemes and the RBI has given the same advice to Telangana.

Telangana and four states  UP, Odisha, Jharkhand, and Kerala are expected to spend more on the welfare schemes in the next 3 years.

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