State’s tightrope walk in terms of finances continues 

TS opted for special drawing facility on all days in July and WMA for 30 days

September 26, 2022 06:04 pm | Updated 06:04 pm IST - HYDERABAD

The State is apparently on a tightrope walk in implementing the spree of welfare programmes launched for different sections as the financial situation continues to be below expectations.

The State, according to the Reserve Bank of India’s bulletin for July, depended on special drawing facility (SDF) for all the 31 days in July drawing ₹717.36 crore. From a stage when it had not utilised ways and means advances (WMA) for months, the government had to resort to ways and means advances to the tune of ₹1,369.22 crore utilising the facility for 30 days during the same month.

The State also opted for overdraft for an amount of ₹988.22 crore for 18 days in July reflecting the tight fiscal situation. The RBI said, in its bulletin, that Telangana, along with Gujarat and West Bengal, reported inflation in excess of 8% as compared to States like Goa and Manipur which reported below 4%.

Although the State had reported revenue receipts of ₹39,242 crore at the end of July, up ₹10,030 crore from ₹29,212 crore receipts at the end of the June quarter, a major chunk of the receipts were because of the market borrowings. The State raised market borrowings of ₹4,904 crore during July following the relaxation given by the Union Finance Ministry.

The State however paid the first instalment of the premium of Rythu Bima, the farmers insurance scheme, amounting to ₹725 crore for the current year in time notwithstanding the financial constraints it has been facing. The second instalment of an equal amount should be paid in February, giving at least some time for the State to mobilise resources required for the purpose.

“Rates of the insurance premium remain the same after we negotiated with the insurer — the Life Insurance Corporation of India. But there has been a rise in the enrolment of farmers into the scheme,” a senior Finance official told The Hindu.

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