The State government is continuing to depend on open market borrowings (OMBs) through Reserve Bank of India to meet its financial commitments for welfare and developmental programmes.
The government has borrowed ₹8,000 crore in the form of State Development Loans and auction of securities during the second quarter of the current financial year with more than one and half a months still remaining. The government raised OMBs to the tune of ₹2,000 crore on August 10 and ₹1,500 crore on August 3, taking the total to ₹3,500 crore during the current month.
The government raised ₹4,500 crore in July including ₹2,500 crore in the form of auction of securities on July 16 and July 30 and State Development Loan of ₹2,000 crore on July 13. The development comes in the light of indicative calendar released by the RBI for the second quarter wherein the OMBs for the period were projected at ₹6,000 crore.
The State indicated that it would borrow the amount in four tranches — ₹1,000 crore during the auction to be conducted on July 27 and ₹2,000 crore on August 10. This will be followed by raising another ₹1,000 crore on August 24 and ₹2,000 crore on September 7, according to the RBI calendar.
But the government raised ₹8,000 crore already reflecting the stress on finances to ensure implementation of welfare and developmental programmes. The government had raised total quantum of ₹13,500 crore through open market borrowings for the first quarter as against the ₹8,000 crore it had indicated for the period.
While kharif instalment of flagship Rythu Bandhu scheme caused a major outgo of over ₹7,500 crore, implementation of revised pay scales to all categories of employees with 30% fitment benefit had its impact on the finances. The Finance department is said to be working overtime to raise resources for meeting the likely impact of the Dalit Bandhu, involving transfer of ₹10 lakh each to identified SC beneficiaries as part of efforts to promote entrepreneurship among them.
