Telangana Government goes for huge borrowings
Finance wing seeks RBI help to raise Rs 2,500 crore
Hyderabad: The cash-strapped Telangana State tops the list of five States which have sought institutional borrowing through the sale of government securities before the RBI in June this year. The State Finance Department has requested the Reserve Bank of India to raise a whopping Rs 2,500 crore for a single month as the demand for funds to meet the financial needs increased suddenly.
In contrast, AP, Gujarat and Punjab requested the RBI for borrowing of Rs 1,000 crore each and Rajasthan Government asked Rs 1,500 crore through the auction of security bonds. The result of the auction would be announced on June 8 and the payment by successful bidders would be made on the next day.
According to officials, the government has sought the highest borrowing for a single month in the recent times as the State was in dire need of funds to disburse the cash incentive under the Rythu Bandhu scheme to the farmers from June second week.
"The government has projected huge revenues in the first quarter of this financial year. The second wave of corona pandemic and the lockdown dashed the government hopes in achieving the revenue targets. It required Rs 20,000 crore. to pay salaries, Aasara pensions and Rythu Bandhu benefit in the second quarter of this financial year," said an official. The government is expecting only Rs 10,000 crore tax revenue in the second quarter and the State will have to depend on borrowings for funds.
In the 2020-21 financial year, the government has mobilized nearly Rs 40,000 crore funds through borrowings and this year also it would be not less than Rs 35,000 crore due to continuous economic slowdown, the official said that in July also, the borrowing from RBI would be not less than Rs 2000 crore.