The State has presented a strong case with the Union Finance Ministry in support of its request for early permission to raise open market borrowings to meet its immediate financial requirements.
Finance department Special Chief Secretary K. Ramakrishna Rao replying to queries raised by Union Finance Secretary T. V. Somanathan said the government had effectively used the amounts it raised as capital expenditure for schemes like Mission Bhagiratha which have become role models to the country. Participating in a video conference with Mr. Somanathan, Mr. Ramakrkishna Rao is understood to have raised objections to the manner in which the Centre was asking questions relating to borrowings of the previous years retrospectively.
The Union Finance Ministry is reported to have raised questions about the loans raised by the government in the name of corporations claiming that they had no capacity to repay. Mr. Ramakrishna Rao, however, is learnt to have pointed out that it was the Centre which gave permission to the States to borrow ₹1.27 lakh crore outside the FRBM norms.
