HYDERABAD: To meet its day-to-day expenses, the state government is continuing to depend on Overdrafts (OD), Ways and Means Advances (WMA) and Special Drawing Facility (SDF) from the Reserve Bank of India (RBI).
In the first seven months of this financial year April 1 to October 31, 2024 the government raised Rs 36,200.65 crore through these avenues.
As per RBI data, from April 1 to the end of October this year, the state government raised Rs 9190.97 crore through WMA, a facility allowed by the RBI to states for meeting temporary cash mismatches. The state government availed this facility for 170 days.
Similarly, in the same period, the government availed OD facility for 64 days, raising Rs 6,438.29 crore. The state government availed OD in all months except in July. As per RBI rules, OD is advanced to state governments beyond their WMA limits.
During the same period, the government availed SDF almost every day, except two days from April to October. In these seven months, the state government raised 20,571.39 crore through SDF, availing the facility every single day, except one day each in April and May.
SDF is a facility that the state governments can avail against the collateral of Consolidated Sinking Fund (CSF), Guarantee Redemption Fund (GRF), Auction Treasury Bills (ATB) balances and other investments in government securities.
Meanwhile, as of the end of October 2024, the state government invested Rs 9,440 crore with RBI, in the form of Consolidated Sinking Fund (CSF) and Guarantee Redemption Fund (GRF). CSF and GRF are reserve funds maintained by the state governments with the RBI.