Telangana goes for Rs 4,000-crore bonds to raise funds

The in one of its biggest moves in recent months issued a new schedule of raising Bonds worth Rs 4,000 crore.

The Money will most likely be used to implement theRythu Bandhu schemefor the upcoming season, high-ranking government sources said.

In July, the state borrowed for the scheme’s execution and transferred Rs 7,360 crore into the accounts of more than 60 lakh eligible farmers.

The earlier raised Rs 2,000 crore was used to meet rising costs for the implementation of several initiatives, but funds for the Dalit Bandhu scheme are still required. While in the first seven months of the fiscal year, the state borrowed more than Rs 30,000 crore. In the last two months, the state has barely raised Rs 2,000 crore in bonds as revenue increased. Faced with the need for finances to pay salaries under the new PRC, the state postponed making a decision on the new Asara pension scheme.

Given state’s limited Resources, the state administration has asked the Centre to increase the borrowing limit under the Finance Responsibility and Budget Management (FRBM) Act from 4% to 5%.