Telangana government to raise Rs 5,000 crore in loans to pay high cost debt
Telangana government has submitted its indent to raise the money in four tranches with a longer maturity period i.e; from 13 years to 28 years.
Hyderabad: Telangana state government will raise Rs 5,000 crore in borrowings through auction of bonds by the RBI, replacing higher interest loans with lower interest ones on Tuesday, November 25.
According to reports, the government has submitted its indent to raise the money in four tranches with a longer maturity period i.e; from 13 years to 28 years. With this round of borrowing, Telangana is set to cross the Rs 54,009 crore limit that the Centre has set for this financial year 2025-26, with four months still remaining.
How much did the govt borrow in October and November?
The government has raised Rs 50,541 crore of the Rs 54,009 crore till October end and in November so far, the government raised borrowings of Rs 4,100 crore during the auction of securities that was conducted on November 4, 11 and 18 and the upcoming auction will take the total borrowings to Rs 9,100 crore.
Meanwhile, the revenues of the state government have been lower than estimated figures in this financial year, leading to dependence on borrowings. In August, the state had to depend on special drawing facility through all 31 days, raising a debt of Rs 5,081 crore and raising another Rs 2,000 crore through ways and means advances and it was on an overdraft for 17 of those days.
The high borrowing also comes at a time when the government has to deposit Rs 6,000 per acre into the accounts of over 60 lakh farmers under Rythu Bharosa. Officials are confident that the Centre would not object to borrowing this time around.