Telangana Seeks Rs 45,000 Cr for New Schemes, Awaits Centre's Nod
HYDERABAD: The state government is making efforts to mobilise Rs 45,000 crore to implement four new schemes on January 26. It has sought permission to raise loans of Rs 30,000 crore in three months (January-March) but the Centre is yet to approve as it breaches the FRBM limit.
The government announced its plans to launch rythu bharosa to extend Rs 15,000 per acre per year, Indiramma Atmeeya Bharosa to extend Rs 12,000 per year to landless agricultural families, Indiramma housing scheme to extend Rs five lakh to each beneficiary to construct houses and issue of new ration cards, the first such exercise in ten years.
Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the finance portfolio, had stated that the state government needs Rs 22,500 crore for construction of Indiramma houses, Rs 2,000 crore for Indiramma Atmeeya Bharosa and Rs 19,000 crore for rythu bharosa. The additional expenditure on account of issuing new ration cards will be known only after the final figures on the number of beneficiaries are out.
As per a report from the Comptroller and Auditor General of India (CAG), the state government has already raised Rs 37,850 crore in market borrowings in the fiscal year 2024-25, up until November 2024. An additional Rs 2,909 crore was raised in December, bringing the total market borrowings to Rs 40,759 crore by the end of December.
This proposed Rs 30,000 crore loan in the final quarter would push the total market borrowings for the entire fiscal year 2024-25 to a staggering Rs 70,759 crore. However, this requires Centre's permission, as Telangana is bound by the Fiscal Responsibility and Budget Management (FRBM) Act, which sets a borrowing limit.
According to the FRBM norms, the state is eligible to borrow a maximum of Rs 57,112 crore during this fiscal year, a limit already reflected in the state's budget for 2024-25.
With the proposed additional Rs 13,647 crore in borrowings exceeding the prescribed FRBM limits, the state will require the Centre's approval to enhance the FRBM limit to accommodate the extra borrowing.
The state government has sought permission to raise Rs 3,000 crore on January 7, with subsequent borrowings of Rs 2,000 crore on January 14, Rs 2,500 crore on January 21, Rs 2,500 crore on January 28, Rs 3,000 crore on February 4, Rs 2,000 crore on February 11, Rs 2,500 crore on February 18, Rs 2,500 crore on February 25, Rs 3,000 crore on March 4, Rs 2,500 crore on March 11, Rs 2,000 crore on March 18 and Rs 2,500 crore on March 25.
However, the Centre has permitted Telangana to raise only Rs 3,000 crore on January 7, while denying permission to raise Rs 2,000 crore on January 14. There is no clarity on whether permission will be granted to raise Rs 2,500 crore on January 21 and Rs 2,500 crore on January 28 and if granted whether the permission will be given to raise partial or the full amount.
The state government is exploring other options to meet the expenditure such as expediting Layout Regularisation Scheme (LRS), which is lying pending since 2020. Clearing of over 25 lakh pending LRS applications is expected to fetch Rs 10,000 crore to the state exchequer.
Besides this, the government is also planning to auction plots in cities and towns that remain unsold from auctions held during the BRS regime due to various reasons.