Hyderabad: The Telangana Government is planning to borrow huge amounts due to a decrease in its revenues, a report said. During November and December, the government raised 10,572 crore through the auction of bonds. The amount of loan during these two months was Rs. 7,000 crore in December and Rs. 3572 crore in the month of November.
The Telangana State Government had decided to borrow Rs. 1000 crore on December 8, 2020, Rs.1000 crore on December 15, Rs.2000 crore on December 22 and Rs.1000 crore on December 29. The Reserve Bank of India had issued an advisory in this regard.
In general, the state government has the right to meet the expenses of employees’ salaries and the funds required for its welfare schemes. It also has the right for corporate borrowing.
Telangana Government acquired for the current fiscal year 2020-21, 22,000 crores through borrowings and the latest figures show its borrowing at 32,572 crore. The government had raised through the internal borrowing 30,000 crore for the last fiscal year of 2019-20. However, this figures touched till December Rs.32,000 crore. Through the increase in the limit of FRBM and the GST option, the Telangana government had a further capacity to borrow additional money.
The officials are busy in mobilizing funds for the implementation of “Rythu Bandhu” scheme. As per the release from CM’s office, the state requires Rs. 7300 crore for this purpose. These funds are to be credited to the farmer’s accounts between the last week of December and the first week of January.
As per an assessment by the officials, the Sate government’s income during the current fiscal year could be Rs. 1 lakhs crores. A loan of Rs.40,000/- would be raised which will add up to the Rs.1.35 lakhs at the disposal of the state government’s kitty.
The income of the state government during the last fiscal year was Rs. 1.02 lakh crore. In addition to this, the Government had raised Rs.29,902 through borrowing making the total amount available with the Government at Rs.1.32 lakh crore.
The State government had presented an aggregate budget of Rs.1.82 crore for the current fiscal year. It proposed to acquire Rs.30, 000 crore through the disposal of government lands and Rs.30,000 crore through borrowing while the remaining amount was to come from different streams of revenues. However, there is a likelihood of a decrease in this forecasted income.
The State had earned during the current fiscal year i.e. from April to October an income of Rs.73,968 which included the borrowed amount of Rs.27,000 crore. The expenditure for the same period was Rs.69.643.
Regarding the revenue from the tax in April and May, it decreased drastically. The revenue picked up from June as per the CAG’s report. The total state’s revenue (minus the Tax income) was Rs. 48,000 crore. At the end of December, the State’s income shall likely to be around Rs.64,000 crore. If the State earns the income for the next three months upto Rs.30,000/- then the aggregate income shall reach Rs.1 lakh crore. The income for the next fiscal year is expected to be at the same level.