Hyderabad: In further relief to the Telangana state government, the Centre on Monday allowed it to raise Rs 6,572 crore loans through auction of bonds for the last quarter of the financial year, January-March 2022-23.
The Centre also approved Rs 12,000 crore loans for Andhra Pradesh during the same period.
The TS government has already garnered Rs 29,500 crore through the auction of bonds by the Reserve Bank of India in the first nine months of this fiscal, from April t December. With the fresh approval, the TS government will close the fiscal with total loans of Rs 36,072 crore.
The TS government was eligible to borrow Rs 54,000 crore for this fiscal as per the Fiscal Responsibility and Budget Management Act based on its Gross State Domestic Product. However, the Centre imposed restrictions on loans, citing huge off-Budget borrowings of the state government. These loans were raised through various corporations with the state government standing guarantee.
The Centre cut down the loan limit to Rs 36,000 crore for this fiscal, which resulted in a shortfall of Rs 18,000 crore for the state government.
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