HYDERABAD: Chief Minister K Chandrasekhar Rao on Saturday requested PM Narendra Modi to increase the Fiscal Responsibility and Budget Management (FRBM) limit by 0.5 per cent to Telangana for 2018-19, allowing the state to raise more borrowings. Apart from raising various crucial issues pertaining to state in his meeting with Prime Minister Narendra Modi in Delhi on Saturday, the Chief Minister submitted two written representations on FRBM limit and on the release of funds to backward districts.
As per the recommendations of the 14th Finance Commission, the states which are revenue surplus are eligible to raise market borrowings up to 3.5 per cent of the Gross State Domestic Product (GSDP). Accordingly, the Central government had conveyed its consent to Telangana to raise borrowings up to 3.5 per cent of the GSDP during 2016-17 and 2017-18.
“In this connection, it is brought to your notice that as per the accounts finalised by Principal Accountant General (A&E), Telangana, the state has a revenue surplus of `3,459.37 crores for 2017-18. The state continues to be revenue surplus for the fourth consecutive year. As the government has fulfilled the conditions laid down for availing the additional fiscal space of 0.5 per cent of GSDP, I request you to consider the borrowing limit of the state be raised by 0.50 per cent of GSDP at the earliest.
There is a significant jump in the expenditure commitments of the state on account of flagship programmes like irrigation and provision of drinking water to every household. All the work have reached an advanced stage and are about to give benefit to a large number of people in the state,” the CM said in his letter to the Prime Minister. In another letter, the CM recalled that the AP State Reorganisation Act provides for special assistance for the development of backward districts in the successor states of Telangana and Andhra Pradesh. Assistance amounting to`450 crore, with `50 crore each for nine erstwhile districts, have been released.
“The Utilisation Certificates for the amounts released were also submitted. The fourth instalment is yet to be released. Under the Backward Regions Grant Fund (BRGF), nine out of the then 10 districts of Telangana were considered backwards. With the reorganisation of districts, the number of districts in the state now stands at 31,” the CM said. “With the formation of the new districts, the developmental and administrative expenditure has considerably increased putting immense pressure on state finances. NITI Aayog also had addressed to the Department of Expenditure, Ministry of Finance, GoI, recommending for the release of `450 crores to the state. Release the fourth instalment of special assistance for the backward districts at the earliest,” Rao requested Modi.