Telangana’s outstanding debt is likely to increase more than anticipated in the current fiscal year since the State’s finances are still in peril as a result of recent failures and the administration is increasingly turning to borrowings to pay its financial obligations.
All eyes will be on the Telangana administration’s final complete budget presentation because the government is confident that difficult times are set to hit ahead. While preparing to present the budget in February, the Telangana finance department is filled with uncertainties. This budget, which is anticipated to be a pre-election one, will be the TRS government’s final full budget. That implies that it might include financial commitments to win over voters.
Officials are attempting to put together a welfare budget for the election year but are unsure of where to get the money. Telangana is seeking for additional revenue sources as a result of pressure to satisfy budget goals. To improve the GSDP, Chief Secretary Somesh Kumar is holding back-to-back sessions. He has met with the departments of agriculture, animal husbandry, industries, and IT, and he will continue to do so. He is looking for “measures for improving GSDP.”
Borrowing capacity and FRBM restrictions may rise when GSDP is improved. The government will offer a complete budget since its tenure ends in December 2023. Telangana has only been able to raise 38.22% of the estimated total revenue receipts in 2022–2023. The Telangana government set a target of Rs 1.93 lakh crore in total income receipts for 2022–2023. However, just 73,767.13 crore rupees have been realised in the first half of the year up till September.
In 2018, public spending aided TRS’s re-election, and there is obviously no compromising on giveaways.
The TRS is unable to take the chance of even postponing the implementation of initiatives after Chief Minister K. Chandrasekhar Rao repeatedly stated that if the BJP is elected, all social schemes will be eliminated. The State spent Rs. 10,100.47 crore on interest, Rs. 18,829.07 crore on salaries, Rs. 9,093.7 crore on pensions, and Rs. 4,834.54 crore on subsidies for the fiscal year 2022–2023. The borrowing limit has been set by the Center, and now authorities are scrambling to fill the hole.
The Telangana government was initially qualified to borrow Rs 53,970 crore, or 3.5% of the GSDP, from the market in fiscal 2022–2023, in accordance with the FRBM Act’s stipulations. However, the Center limited loan requests since they were overbudget borrowings and Telangana can now take only Rs 29,000 crore as loan till December. This is a tough nut to crack and use! #KhabarLive #hydnews #hydlive
