The State Government availed another instalment of open market borrowings of ₹1,000 crore from the Reserve Bank of India on Tuesday.
This will take the total borrowings during the first month of the second quarter to ₹5,000 crore and the current financial year to ₹12,000 crore. According to the indicative calendar of borrowings released by the RBI, the State had decided to raise ₹ 9,000 crore during the second quarter of which it had already availed of ₹5,000 crore and would be in a position to raise another ₹4,000 crore till the end of September.
The State has landed in a piquant situation ever since the Union Finance Ministry raised questions relating to financial management and debt status of the State particularly in terms of off-budget borrowings. The State could not even raise half of the ₹15,000 crore it projected during the first quarter following the queries raised by the Union Ministry.
It however managed to raise ₹7,000 crore during the first quarter in two instalments after the Centre gave its consent to raise OMBs on an ad hoc basis to meet the immediate financial requirements. The issue had become another point of conflict between the BJP-led Central Government and the State as Chief Minister K. Chandrasekhar Rao criticised the Prime Minister Narendra Modi Government for steeply cutting down the borrowings limit to ₹23,000 crore for the current year as against the ₹52,165 crore estimated in the name of Fiscal Responsibility and Budget Management Act norms.
The Chief Minister was critical of the Centre for imposing “economic sanctions” on Telangana asserting that the queries raised by the Centre were reflective of its “conspiratorial and vindictive attitude” towards the State which had achieved accelerated growth since its formation.
Asked whether the State government would participate in the auction to be conducted by the RBI next week, senior officials replied in the negative. This would mean that the State would go for another round of OMBs only next month.
