HYDERABAD: The state government on Tuesday raised Rs.4,000 crore through auction of bonds conducted by the Reserve Bank of India (RBI). This is for the first time that the state government has raised loans in this fiscal (2022-23) after the Centre halted Telangana from raising loans in the first two months of this fiscal (April and May).
The state government requested the Centre to allow it to raise another Rs.4,000 crore next week. However, the Centre’s approval is awaited in this regard. However, the finance department is confident of securing the Centre’s approval to raise another Rs. 4,000 crore this month.
The state government sought permission to raise Rs.15,000 crore in the first three months of this fiscal (April-June). Of this, Rs.3,000 crore was sought in April, Rs.8,000 crore in May and Rs.4,000 crore in June.
The Centre denied approval in April and May which led to a loan deficit of Rs.11,000 crore. The state is requesting the Centre to cover up this deficit to some extent by allowing it to raise an additional Rs.4,000 crore in June since Rs.4,000 crore sought for June earlier was already raised on Tuesday. The state government has again appealed to the Centre not to treat off budget borrowings made in the previous two fiscals as part of overall state government’s debt for this fiscal 2022-23 and impose any fresh conditions to avail loans with effect from this fiscal itself.
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