Telangana seeks 8K cr RBI grant to make up for lockdown loss

Hyderabad: The cash-strapped Telangana likely to rely on borrowings again in the second quarter (July to September) of the present financial year 2021-22. The State government has sought Rs 8,000 crore from the Reserve Bank of India.

In July alone, the government requested the RBI to release Rs 3,000 crore through the sale of security bonds.

As the State was hit by second wave of Corona pandemic and lockdown-2, the government had borrowed more than Rs 12,000 crore in the first quarter (April to June) to meet the financial needs, mainly the payment of salaries to the government employees, Aasara pensions and for to provide treatment to corona patients in the government Covid hospitals.

Officials said that the State would borrow Rs 3,000 crore in July month alone. The RBI has been requested to mobilise Rs 2,000 crore by the sale of bonds on July 13 and Rs 1,000 crore on July 27. State Finance department has sent a request to the apex bank to release Rs 3,000 crore borrowed amount in August and Rs 2,000 crore in September.

The demand for requirement of funds is growing in Telangana after the State announced the new Pay Revision Commission (PRC) for government employees and new schemes like old age pension to poor above 57 years and Rs 5 lakh insurance scheme for weavers from next month.