TS may borrow from RBI’s overdraft facility
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Govt. left with a borrowing capability of ₹2,500 crore until June-end
In anticipation of ₹3,000 to ₹4,000 crore dip in income because of lockdown in May, the State authorities was considering to borrow cash from methods and means advances and overdraft facility of the Reserve Bank of India (RBI) to shore up its assets in June.
The authorities has already raised ₹5,500 crore by way of securities and bonds until now on this quarter and was left with a borrowing capability of ₹2,500 crore until June-end.
Drop in earnings
With the drop in earnings and a dedication to disburse ₹7,000 crore in the direction of Rythu Bandhu in June, officers mentioned there was no different possibility however to resort to methods and means and OD.
It was exactly the tight monetary place of the Telangana authorities which motivated Finance Minister T. Harish Rao to hunt a hike in FRBM restrict as much as 5% of GSDP on the GST Council assembly on Friday.
Norms eased
The Centre had eased FRBM norms final yr because of first wave of COVID and given them permission to lift borrowings as much as 4 per cent which was a rise of 1 per cent over regular fee.
At 4 per cent, the publicity of presidency to credit score for 2021-22 was ₹ 41,000 crore.
Of this, ₹ 8,000 crore can be exhausted by June-end. But, officers mentioned a recurring loss in income of ₹3,000 to ₹4,000 crore a month within the current circumstances would far overshoot ₹41,000 crore.
As yet another per cent of hike in FRBM restrict would have given the federal government some extra leeway since it could fetch a further ₹10,000 crore, the Centre was requested to concede the identical on the GST Council assembly on Friday, sources mentioned.
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