With the steep cut imposed by the Central government on open market borrowings, the State government is exploring other options to raise resources to meet the requirements for effective implementation of its flagship schemes like Dalit Bandhu.
The Cabinet sub-committee on resource mobilisation headed by Finance Minister T. Harish Rao is said to be in consultation with experts on the modalities to raise resources other than open market borrowings through the Reserve Bank of India. “The panel is looking at various options,” a senior Finance department official told The Hindu.
The development follows the reduction of the borrowing limit of the State by the Union Finance Ministry citing the huge off budget borrowings and warning that these would be brought under the Fiscal Responsibility and Budget Management norms despite repeated pleas of the State government.
The Centre was reported to have cut down OMBs by around ₹19,000 crore taking the quantum to ₹33,000 crore against ₹52,165 crore estimated in the current year’s budget.
Chief Minister K. Chandrasekhar Rao however, announced that the quantum was reduced to ₹23,000 crore as against the over ₹53,000 crore projected by the government citing FRBM norms which, he said, exposed the Centre’s ‘conspiratorial’ attitude towards a progressive State like Telangana.
Coupled with the reduction in borrowings limit, officials are not hopeful that the targets set for grants in aid and contributions from the Centre took would be realised. The budget estimates for grants in aid and contributions last year was ₹38,669 crore, but the government realised ₹8,619 crore at the end of the year, according to preliminary estimates submitted to the Comptroller and Auditor General of India.
The same was the case with non-tax revenue, which was projected at ₹30,557 crore in the budget estimates, but only ₹8,857 crore was realised.
Land sale under Rajiv Swagruha
Given this background, the government is looking at options like sale of lands, plots and housing units under Rajiv Swagruha to raise the resources, the official said.
The State government has initiated measures to strengthen and streamline its own revenue sources. Steps had been initiated for sale of Rajiv Swagruha flats, lands under the possession of HMDA, enhancement of life tax on vehicles, liquor prices and other measures to augment the State’s own revenue. Enhancement of life tax on different categories of vehicles is estimated to fetch an additional ₹1,400 crore while similar increases are expected from the Excise and Registration departments.
However, doubts still persist on whether the targeted revenue could be achieved at the end of the fiscal given the magnitude of the requirements.
