The State has borrowed ₹2.41 lakh crore in the form of loans from various agencies since its formation in 2014-15. The government which raised ₹9,580 crore loans during the first year of its formation has been depending heavily on them ever since.
This could be seen from the fact that borrowings during 2015-16 were ₹17,385 crore, 2016-17 (₹32,731 crore), 2017-18 (₹26,232 crore), 2018-19 (₹29,139 crore), 2019-20 (₹38,286 crore), 2020-21 (₹44,394 crore) and ₹43,648 crore till February during the current financial year.
The State had already inherited debt in excess of ₹70,000 crore at the time of its formation taking the total liabilities to over ₹3 lakh crore at present. Loans from the open market constituted the major chunk of borrowings at ₹2.18 lakh crore while money raised from power bonds/UDAY scheme was pegged at ₹8,923 crore. The government had also raised resources through NABARD, NCDC, HUDCO, small savings and other sources to meet its financial requirements in the past seven years.
The information was provided in reply to a query from the Congress members about the quantum of the loans availed of since the formation of the State during the Question Hour in the Legislative Assembly on Monday. Finance Minister T. Harish Rao’s reply came after the Speaker Pocharam Srinivas Reddy had announced that remaining questions were deemed to have been answered for want of time.
The Central government allowed additional borrowings of ₹1,435 crore in 2019-20 for relief to the State on account of tax devolution as a one time special dispensation beyond the State’s eligibility. It had also provided additional borrowings of 0.25% of the GSDP ₹2,459 crore as per the Finance Commission recommendation during the year.
The unprecedented COVID-19 pandemic had a serious negative impact on the resources of the State government and the Centre allowed additional borrowing of 2% of GSDP during 2020-21 which was partly unconditional and partly conditional. The total additional borrowing allowed during the year was ₹17,558 crore amounting to 1.75% of the 2% allowed.
The government said the Centre had allowed additional borrowing of 1% of the GSDP ₹10,784 crore (0.5% of the GSDP against incremental capital expenditure) during the current fiscal. Loans from the open market and small savings were untied loans and they were utilised on various developmental activities.
The loans raised from NABARD were used for Mission Kakatiya, Mission Bhagiratha, check dams and other infrastructure while the NCDC loans were utilised for Sheep and Goat Development Corporation. The HUDCO loans were utilised by the Telangana State Housing Corporation and those through power bonds and UDAY scheme were spent on works relating to strengthening of the power infrastructure in the State.
