Faced with a financial crunch and increasingexpenditure, theTelangana governmentwill be going for a Rs 47,500 croreloanthis financial year. As part of the first instalment to raise the loans in the form of , the State Government has got permission to raise Rs 8,000 crore from theReserve Bank Of India(RBI). This amount will be raised from April to June in multiple instalments.
In the month of April, the government has planned to raise Rs 3,000 crore. Bonds worth Rs 1,000 crore were raised in the first 15 days of April, and another Rs 1,000 crore will be raised on the 27th of this month. The willborrowRs 3,000 crore each in May and June through the auction at RBI.
Till last budget, the state government had earmarked 17% of the funds for repaying the loans and interest payment. Since the formation of the state, the government has borrowed Rs 4 lakh crore either in the form of loans or guarantees.