The Union Finance Ministry has fixed the ceiling on State’s gross borrowing for the financial year 2023-24 at ₹42,225.17 crore.
The borrowing limit of Telangana for 2023-24 was arrived at ₹57,813.99 crore as per the recommendation of the XV Finance Commission and as per the guidelines for annual borrowing ceiling for the fiscal year. “However, as the State government had over-borrowed in the preceding years. So after adjusting over-borrowing of ₹15,588.82 crore of previous years, the gross borrowing ceiling of the State for 2023-24 has been fixed at ₹42,225.17 crore,” the Ministry said in response to a query.
Of the total amount, the State government has opted for negotiated loans of ₹1,500 crore and estimated borrowing from the public account is ₹4,107.82 crore. The State plans to mobilise the remaining ₹36,617.35 crore from open market, the Ministry said.
The Ministry’s Deputy Director (PF-S) Sumit Agrawal clarified that it had not imposed any restrictions on Telangana’s market borrowings during the current financial year or the previous fiscal. The Union Ministry of Finance would adopt a common yardstick while granting permission to States under Article 293(3) of the Constitution of India for borrowing from open market and other sources.
These yardsticks are based on the recommendations of the Finance Commission. “Thus, even after adjustment of over-borrowings done by the State government of Telangana in previous financial years, the State has a borrowing space of ₹42,225.17 crore for 2023-24,” he said.
