AMARAVATI: In what could be a setback to the state government, already reeling under severe financial stress, the Centre has trimmed borrowing space of the state, citing over-borrowing in the last five years.
The Centre has found the state had borrowed in excess to its limit by showing Telangana’s quota too into its account.
The Centre, which fixed the state’s borrowing limit at Rs 37,000 crore for the first three quarters, has now capped it at Rs 20,000 crore by deducting Rs 17,000 crore due to over borrowing in the past.
The Union finance ministry asked the state government to clarify whether the borrowing space was calculated inclusive of loan repayments made by Telangana.
