Telangana’s finances continued to witness a shortfall in revenue receipts forcing the government to depend heavily on financial accommodation instruments such as special drawing facility (SDF), ways and means advances (WMA) and overdraft provided by the Reserve Bank of India (RBI) to meet its immediate needs.
The State depended on the SDF for all 31 days in October for raising ₹816.76 crore while it availed of ₹1,186.62 crore in the form of WMA on all days of the same month. It raised ₹493.38 crore through overdraft for 10 days during the same month.
The situation is much in contrast to the assertion of the previous Bharat Rashtra Samithi government which was against depending on the financial accommodation instruments owing to the “robust” fiscal situation. According to the monthly bulletin of the RBI, Telangana’s average WMA utilisation as per cent of the limit allowed was higher than 60% at the end of the first half of the current fiscal. The State was ranked alongside Jammu & Kashmir, Manipur and Andhra Pradesh whose daily WMA utilisation was around 60%.
