india

Centre reduces loan limit for Telangana

Following the Central government’s decision to reduce the state’s loan limit, the Telangana state government is about to face a deficiency of Rs 20,000 crore in the present financial year 2022-23. Owing to huge off-budget borrowings made in the previous two financial years 2020-21 and 2021-22, the Centre has already spoken to the state directorate about slashing the loan limit by Rs 20,000 crore.

As per the official sources, the state government had sought the Central government’s permission to raise Rs 54,000 crore through market borrowings and Rs 5,000 crore through corporations in this financial year 2022-23. The Centre appears to have only accorded sanctions for market borrowings worth Rs 40,000 crore.

To decide on whether to obtain loans through corporations or not, the state cabinet would meet soon. And if yes, the quantum of funds to be raised through corporations.In the first quarter of this fiscal (April-June), the Centre already imposed a deduction of Rs 8,000 crore, by approving only Rs 7,000 crore against Rs 15,000 crore sought by the state government.

Whereas in the second quarter (July-September), the state government sought permission to raise Rs 9,000 crore loan. So, the Centre approved Rs 3,000 crore so far and the approval for the balance amount of Rs 6,000 crore is awaited. For the first time in the second quarter, the state government had raised Rs 3,000 crore through the auction bonds in recent times.

Source: Read Full Article