Govt. to raise ₹1,500 crore through sale of securities

The State government has decided to raise ₹1,500 crore open market borrowings through the Reserve Bank of India (RBI) to meet its immediate financial commitments.

The government has accordingly decided to sell securities worth ₹1,500 in the auction to be conducted by the RBI on Monday. The RBI will auction securities pertaining to Arunachal Pradesh (₹400 crore), Nagaland (₹350 crore) and Rajasthan (₹1,000 crore) in addition to Telangana during the auction. The auction would be conducted on the Reserve Bank of India Core Banking Solution (E-Kuber) system and payment by successful bidders would be made during banking hours on Tuesday at RBI head office in Mumbai and its regional offices.

Though the calendar released by the RBI mentioned that the government had confirmed participation for raising market borrowings to the tune of ₹1,000 crore, the amount had been increased by ₹500 crore subsequently. The development reportedly follows the State government’s decision to implement fitment of 30% to all categories of employees from this month.

The government is expected to incur additional expenditure in excess of ₹900 crore a month on account of the implementation of pay revision. In addition, the government had to credit ₹5,000 an acre each into the accounts of over 60 lakh farmers starting next month as Rythu Bandhu instalment for Vaanakaalam (kharif) season.

It was therefore decided to raise resources from available sources to ensure that there was no shortfall of funds in fulfilling the commitment given to employees and farmers. Raising financial resources through RBI’s open market borrowings on Monday will be the first such development in the current financial year. The government had kept open option for borrowings over ₹47,000 crore during the current fiscal.

Meanwhile, the stage is being set for issuance of government orders on the implementation of the new pay scales for employees even as modalities are said to be worked out for fixing the quantum of enhancement to contract, outsourcing and other categories of staff.

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Printable version | May 7, 2021 7:50:36 AM | https://www.thehindu.com/news/cities/Hyderabad/govt-to-raise-1500-crore-through-sale-of-securities/article34353386.ece

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