KCR for relaxing FRBM norms

Tells NITI Aayog delegation that it would help the State borrow more loans for development schemes

Telangana Chief Minister K. Chandrasekhar Rao requested a delegation of the NITI (National Institution for Transforming India) Aayog that called on him here on Thursday to relax the FRBM (Fiscal Responsibility and Budget Management) norms so that the State could borrow more loans for taking up development schemes.

Member of NITI Aayog V.K. Saraswat, former DRDO chief and advisor to Union Defence Minister, and Advisor Ashok Jain called on Mr. Chandrasekhar Rao in the Secretariat.

During their meeting, the Chief Minister told them that the FRBM guidelines for raising resources through borrowings for revenue surplus States should be on a par with the Centre.

He stated that such a relaxation would enable the States to invest in capital infrastructure to improve the economic growth.

It was highlighted by the Chief Minister in the backdrop of reduction in the centrally- sponsored schemes’ outlay to the States and devolution of lesser share of funds to revenue surplus States such as Telangana.

During the recent budget presentation, Finance Minister E. Rajender had stated that there should not be any discrimination between the Centre and States with regard to the FRBM norms. The State Government is of the hope that the Centre would relax the norms and allow it to borrow loans up to 3.49 per cent of GSDP against the existing limit of less than 2.7 per cent.

The Chief Minister was understood to have requested the NITI Aayog delegation to recommend to the Centre to extend assistance to programmes such as Mission Kakatiya and Water Grid, which were aimed at improving the livelihood opportunities in rural areas.

They assured the Chief Minister that they would recommend any good scheme being implemented in Telangana to other States.

Earlier, the NITI Aayog team met vice-chairman of the Telangana State Planning Board S. Niranjan Reddy, Chief Secretary Rajiv Sharma and officials of the Planning and Finance Departments. The officials made a presentation on flagship schemes of the State Government including drinking Water Grid, Mission Kakatiya and others.

Advisors to the Government Papa Rao, G.R. Reddy, A.K. Goyal, Parliamentary Secretary Jalagam Venkat Rao, Principal Secretaries B.P. Acharya (planning) and S. Narsing Rao (CMO) were present.