State raises ₹1,000 cr. OMBs amid absence of clarity on final figure 

The State Government raised another instalment of open market borrowings to the tune of ₹1,000 crore through sale of securities on Monday.

This is the second market borrowing this month as the State raised ₹2,500 crore on August 2. The total quantum of OMBs raised so far during the current financial year reached ₹15,500 crore with the State opting for ₹12,000 crore borrowings in June and July ever since it has been permitted to raise OMBs by the Union Finance Ministry.

The borrowings come as a major relief to the State as the government had to continue implementation of the spree of welfare schemes like Dalit Bandhu and the just announced Nethanna Bima, insurance cover for weavers. However, confusion still prevails over the total quantum of borrowings allowed to be raised during the current fiscal.

Finance department officials till recently claimed that clarity was yet to emerge on the final annual figure of borrowings after a series of meetings with the Union Finance Ministry officials. Chief Secretary Somesh Kumar, accompanied Finance department special chief secretary K. Ramakrishna Rao to hold meetings with the Union Government seeking its permission to raise funds to meet the immediate financial commitments of the State.

The State has proposed to raise close to ₹54,000 crore through open market borrowings in additional to loans from the Central Government and other sources in the budget estimates, but the quantum of OMBs was pruned to ₹52,167 crore in the provisional figures submitted to the Comptroller and Auditor General of India. The State however could not raise a single instalment in the first two months due to queries raised by the Union Finance Ministry on off-budget borrowings and was finally allowed to raise borrowings on ad hoc basis.

It was in this background, Chief Minister K. Chandrasekhar Rao said, at a press conference on Saturday, that the State had been allowed to raise ₹39,000 crore for the current year against the ₹54,000 crore projected in the budget estimates. “We will continue our fight for the balance ₹15,000 crore,” he said. Finance department officials were not available for their comments on whether the State had received any communication from the Union Ministry on the final annual figures.

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Printable version | Sep 19, 2022 12:03:19 am |