If the reports are to be believed, Telangana state is currently facing the financial crisis.
In the past, the state leaders said that, it is Telangana, which is the second richest state in the country after Gujarat. But it seems, because of the back to back spending on the big programmes, the government’s financial condition has come down.
Though the state had thought of celebrating the Ramzan and also Pushkars with costly arrangements, it is not able to do it, because of the non-availability of funds.
Reasons for the financial crisis in Telangana
The Reserve Bank of India collected Rs. 1260 crores from the Beverages Corporation, in the name of the Income tax. Starting from this, there are many other reasons for the crisis situation in the state.
Loan waiver is the other issue, where the government had to spend Rs. 2250 crores on it. Along with this, Rs.1000 crores as the salaries of the government employees every month is the other reason for the critical position of the state, in terms of finance.
So with the current situation, not even a single crore is coming out of the government, without Chief Minister’s permission.
On the other side, though the government said to give Rs. 1260 crores paid to RBI as an advance, the centre did not concern the proposal.
Security bonds to face the financial crisis
On Thursday, the financial affairs department had sent a proposal to get Rs. 1500 crores from the open market through selling the bonds. In 2015-16 assessment year, the government had already procured Rs. 3400 crores through selling the security bonds.
According to the FRBM (Fiscal Responsibility and Budget Management), the Telangana government can procure Rs. 10500 crores through selling the bonds.
Whatever the case, it would be better, if the government does not put weight on the common people, complaining the budget scarcity.