Repayment of principal and interest of loans continue to impact Telangana finances
Expenditure due to payment of pensions, proposed pensions to patients suffering with some ailments will further add to Telangana’s financial burden
The repayment of principal and interest on loans, both recent and from the previous government, continues to strain Telangana's finances. During the auction of securities by the Reserve Bank of India in April and May, the state government raised gross market borrowings of ₹12,900 crore, yet net borrowings amounted to ₹6,400 crore after deducting ₹6,500 crore, according to the RBI bulletin till the end of May.
Senior officials explained this was due to the repayment schedule of previous loans, a common practice among state governments to factor in past loan repayments while planning current borrowings.
The financial burden increased further with interest payments of ₹7,778 crore by the end of the April-June quarter, representing 36.51% of the ₹21,304 crore allocated for interest in the current fiscal budget. With nine months left in the financial year, the projected interest expenditure is expected to surpass the budget. Additionally, pension and social security payments have reached ₹7,300 crore by the end of the first quarter, nearing half of the ₹14,736 crore budgeted for the fiscal year.
Chief Minister A. Revanth Reddy's recent promise of pensions to patients with certain ailments is anticipated to exacerbate the situation, making it challenging for the government to secure additional funds.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
