TS won’t yield to riders on FRBM limit: Harish
EXPLAINING THE reasons for amending the FRBM Act, he said the Centre had allowed additional borrowing of ` 1,435 crore during the previous fiscal following the shortfall in the devolution of share of Central taxes
Finance minister T. Harish Rao on Monday categorically assured the Assembly that the state government would not yield to the conditions set forth by the Centre for enhancing FRBM limits for borrowings.
Attending the session after being declared Covid negative, and appreciated by Speaker Pocharam Srinivas Reddy, the Minister was replying to the debate on the Bill amending the Telangana Fiscal Responsibility and Budget Management (FRBM) Act. Explaining the reasons for amending the FRBM Act, he said the Centre had allowed additional borrowing of `1,435 crore during the previous fiscal following the shortfall in the devolution of share of Central taxes as a onetime special dispensation. He said the adverse impact of Covid-19 on revenues and the need to raise additional resources to meet unforeseen expenditure, the Centre had allowed additional borrowing up to two percent of the GSDP over the above the normal limit of three percent subject to amendments to the State FRBM Act. It can also increase the quantum of guarantees to State owned corporations from ninety to 200 percent. He made it clear that “the state government is not willing to accept the conditions imposed by the
Centre even if it impacts its borrowings.”
The Finance minister refuted the contention of CLP leader Mallu Bhatti Vikramarka that the State’s debt burden had risen to `2.38 lakh crore in the past six years and it was spending `23,841 crore on debt-servicing every year and which could go beyond ` 50,000 crore.”
Harish Rao said that the net borrowing was at `1,54,557 crore after the repayment of `34,296 crore in the previous fiscal.
Harish Rao said Telangana could register double digit growth as it has put in place prudent fiscal policies that are focused more on capital expenditure. After the House passed the Bill, Congress members Vikramarka, D. Sridhar Babu, Komatireddy Rajgopal Reddy and D. Anasuya staged a walk-out.