The State government has intensified its efforts to mobilise resources for meeting its immediate financial commitments, thanks to the bleak prospects of improvement in the revenues during the current financial year.
The government has raised ₹ 4,500 crore in the form of state development loans as part of the open market borrowings through the Reserve Bank of India – ₹ 3,500 crore in three tranches in November and another ₹ 1,000 crore in the auction conducted on December 1. One of the primary commitments before the State government in the immediate future is crediting the next instalment of ₹5,000 an acre into the accounts of over 59 lakh farmers for the Yasangi (rabi season).
In spite of the financial difficulties it was faced with, the government successfully credited the Rythu Bandhu instalment for Kharif in the third week of June following the instructions of Chief Minister K. Chandrasekhar Rao. Farmers are anxiously waiting for the announcement on the Yasangi instalment of Rythu Bandhu for taking up cropping for this season.
Simultaneously, the government has communicated its acceptance for Option -1 of the two options suggested by the Union Finance Ministry to meet the shortfall in revenue arising out of GST implementation. The Centre had extended the option a few months ago, but the State accepted one of the options after elaborate deliberations with experts.
In the process, it had joined 22 other States and three Union Territories that have accepted Option-1. In addition to getting the facility of a special window for borrowings to meet the shortfall arising out of the GST implementation, the first option allows the State to get unconditional permission to borrow the financial instalment of 0.5% of GSDP out of the 2 % additional borrowings permitted under the Atmanirbhar Abhiyan by the Centre.
The State opted for 30 year tenure for all the special development loans obtained from the RBI unlike in the past when it opted for shorter periods of five and 10 years. The State received appreciation from the Centre for its planning of short tenure OMBs, but the pattern had undergone a change since July from when the State had opted for 30 year tenure for all, but one, tranches of the state development loans.
