Monday , February 19 2018

KCR to ask Centre for upturn in borrowing limit of state government

KCR is expected to meet Arun Jaitley, Union finance minister and seek the instant discharge of the funds.

KCR

Hyderabad: CM K Chandrasekhar Rao, who is now in Delhi, is predictable to bring stress on the Central government on two significant issues.

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He will ask the central government to issue Rs 450 crore over the backward regions development system for the present financial year, and then, try to get the borrowing bound of the state government enlarged to 3.5 percent of Gross State Domestic Product from 3 percent.

KCR directed finance officials to arrive in Delhi set with notes on these two concerns and they, therefore, rushed to Delhi on this Tuesday evening.

Rendering to the AP Reorganization Act, the Central Government will release around Rs 450 crore to 9 districts at the rate of Rs 50 crore to every single district. In the past two years, the Central government had released about Rs 900 crore.

The state government had written to the Union finance department to issue Rs 450 crore for the present financial year below the backward areas growth scheme.

The Central government had made it transparent that it will issue the budget only after it gets utilization certificates for the Rs 900 crore already out.

Therefore, the state government had sent the utilization certificates for about Rs 900 crore. But NITI-Aayog stated that the utilization certificates were not in the format and wanted more details and a new report.

Telangana Chief Minister is probably to meet Arun Jaitley, Union finance minister and seek the instant release of the capitals. As far as the second problem is concerned, the state government has directed required details and requested for the borrowing frontier to be improved to 3.55 percent from 3 percent of GSDP for the present financial year. But the Central Government has uttered few doubts about the GSDP statistics sent by the TS government.

The Union department of statistics and program application stated that vital entries were missing out in the data lead by the Telangana government, and inquired for additional details before it shots the market borrowing bound for the present financial year.

The 14th Finance Commission has suggested that revenue excess states can be allowable to borrow 3.5 percent of GSDP and it is on this base that the state government is challenging the upsurge in the borrowing limit to 3.5 percent.

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