Fee reimbursement, pension schemes hit in Telangana

It is going for a fresh auction again on October 13 to raise Rs 1,200 crore

Update: 2015-10-12 00:57 GMT
Telangana Chief Minister K. Chandrasekhar Rao

Hyderabad: Due to the Telangana government’s decision to with hold payments, bills for schemes like fee reimbursement and scholarships for students and social security pensions for old-age, widows etc., amounting to Rs 3,000 crore, have been stopped.

The government has already auctioned bonds seven times in the first six months (April-September) of this financial year to raise Rs 9,349 crore. And it is going for a fresh auction again on October 13 to raise Rs 1,200 crore.

“As per FRBM norms, the government is eligible for Rs 14,000 crore loans for a year, but it has secured over Rs 10,500 crore in the first six months itself. Unless the Centre raises the FRBM limit from 3 to 3.5 per cent, it will become difficult for TS to even borrow in the next six months. The raising of this limit would fetch another Rs 3,000 crore loan,” a finance official said .

Officials said only a third of revenues expected in budget have been realised in the first six months of this fiscal.

Chief Minister K. Chandrasekhar Rao is expected to visit New Delhi after Dasara to meet PM Narendra Modi and finance minister Arun Jaitley
 

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