Hyderabad: The Telangana Government has requested permission from the Bank of India (RBI) reserves to increase Rs 13,562 Crore loans in the last quarter of the current financial year.
With this, the total loan raised this year is Rs 48,562 Crore and the cumulative loan load will reach 2.86 lakh crore.
But Telangana’s fiscal health seems reasonable compared to nationally because it will still take place second in terms of gross domestic product ratio as a percentage of loans.
Loan requirements are mostly to feed the country’s ambitious welfare program.
Apart from the economic slowdown because Covid-19, the state has succeeded in achieving a good growth rate, but income is not enough to finance the scheme because the payment also increases proportionally, the source said.
This fiscal year the state government intends to implement the Dalit Bandhu scheme and also began to release funds for Rythu Bandhu.
The state government is scheduled to collect RS 8,000 Crore, Rs 6,000 Crore and Rs 6,295 Crore in the first quarter, second and third respectively, in accordance with the original indicative loan calendar.
The rest of the requirements must be raised in the fourth quarter.
Instead, the country borrows more than planned.
In the first quarter it was Rs 15,000 Crore, in the second and third quarters it touched the 10,000 crore Rs and in fourth place had proposed to borrow 13,562 crores.
The total state loan expenses at the end of the financial year of Rs 2.86 Lakh Crore since its formation reached 24% of GDP, which was little less than the financial year of the pandemic 2020-21 where the cumulative loan expenses numbered slightly 25% of gross domestic product.
According to the Fiscal Responsibility Act and Budget Management (FRBM), 25% of the total state GDP can be considered the upper limit of the total loan raised by the state.