Center Borrower Jumper Smothers TS
Hyderabad: The objections raised by the Union government on the loans to be taken from the companies and the fixing of the eligibility for the government loan will probably lead to a shortfall of Rs 19,000 crore out of the Rs 54,000 crore of rupees that the government wanted to raise by borrowing during the current financial period. year 2022-23.
Top government sources said the Center questioned the state for soliciting huge loans through companies that did not mention the same in the debt account of the State the previous year. “The government’s outstanding public debt under the GSDP did not exceed 25%. If corporate borrowing is included, the total amount of debt will exceed the 25% limit. The ministry Union Finance sought explanation for not including corporate loans in state debt and analyzed total state borrowing from RBI as well as other financial institutions from corporations .
Officials said the Center had asked the state to include loans from the company in the state debt and reduced the borrowing limit to Rs 35,000 crore this year. The state government had already asked the RBI to sanction Rs 15,000 crore as borrowing through the sale of security bonds.
“The Center should not insist that states include corporate borrowings in the state debt account. It was not new for corporations to raise funds through project loans. of infrastructure development. But the Union government is deliberately pushing the state into a financial crisis by depriving them of the right to seek borrowing within the FRMB limit,” the state financial authorities said. .
Sources said the restrictions imposed by the Union Finance Ministry on government borrowing will lead to a financial crisis causing problems in raising the necessary funds to implement social protection and development programmes. The 2022-2023 fiscal year is a crucial year for the Telangana government as the assembly elections are only 18 months away. The government will have to keep its promise to lower the age limit for Aasara pensions to 57 from this year. Due to the funding crisis, the program has not yet started. “Although the state is reeling from the financial crisis, the government is making every effort to implement the scheme from July or August as more than 20 lakh applications are pending approval under the pension,” a senior official said.