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| Photo Credit: Ok. PIchumani
The Telangana Government has determined to raise ₹2,000 crore open market borrowings via public sale of securities.
The authorities has submitted an indent to this impact to the Reserve Bank of India (RBI) which is able to take up the public sale course of via its core banking answer e-Kuber platform on March 12. This will take the full borrowings raised by the State, ranging from January 16, to ₹10,000 crore in the course of the January-March quarter.
Interestingly, the State Government has projected to raise ₹38,234 crore in the course of the present monetary yr via market borrowings and different liabilities after the Union Finance Ministry had restricted its borrowings restrict. But, the borrowings by the State had crossed ₹36,000 crore mark on the finish of December.
The Congress Government, which took over the reins in December, determined to search the Centre’s intervention in making certain that the restrict of borrowings is enhanced to meet instant monetary commitments. Chief Minister A. Revanth Reddy and Deputy Chief Minister Mallu Bhatti Vikramarka met Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman in January second week and defined them concerning the State’s monetary situation.
The Central Government has subsequently allowed the State to raise ₹9,000 crore borrowings moreover in the course of the fourth quarter. The State Government has accordingly raised ₹8,000 crore from January 16 to March 5 via public sale of securities in 5 instalments. With the market borrowings of ₹2,000 crore proposed to be raised on March 12, the federal government would cross the restrict of ₹9,000 crore further borrowings allowed by the Centre.
Senior Finance officers remained tight-lipped when requested whether or not the Centre had permitted further borrowings once more.
