On Friday, the Centre granted permission for the Telangana state government to raise Rs 3,000 crore through the auction of bonds on the 28th of June. The government is battling to raise Rs 7,500 crore for Rythu Bandhu funds disbursal from June 28.
The state government will finish the first quarter of this fiscal with Rs 7,000 crore loans against Rs 15,000 crore sought earlier – Rs 3,000 crore in April Rs 8,000 crore in May and Rs 4,000 crore in June.
But the Centre refused to provide authorization, addressing the government’s sizable off-budget borrowings from the previous two fiscal years as being included in the overall debt. The government vehemently opposed this. In April and May, the two-month debate between the state government and the Centre resulted in a full suspension of the bond auction.
The Centre allows the state government to raise Rs 4,000 crore through a bond auction. The Centre again rejected the auction of bonds scheduled for June 10 and 17.