HYDERABAD: The total debts of the State government, estimated in 2018-19, have surpassed its overall Budget estimates. While the Budget estimate is Rs 1,74,453.84 crore, the estimated debt is Rs 1,80,238.74 crore. Besides this, the outstanding State government guarantees are around Rs 41,539.19 crore. While the government is going for huge loans to meet its requirements, repayment and interest payment is likely to be a burden on it. To avoid this problem of immediate payment, the government is raising money from the market with a tenure of 20 years. “Normally, States issue bonds for a 10-year period which we were also doing till now, But recently, we issued bonds for 20-year period and we have received tremendous response,” a finance department official told Express. “The response to 20-year bonds indicates the reputation of Telangana in the country,” he added.
According to revised estimates of 2017-18, the outstanding amount up to March 2018 is Rs 1,51,133 crore. The State has proposed to take additional loans this year taking the overall outstanding amount to Rs 1.80 lakh crore. “The main objective of debt management in the State is to ensure that financing of the Budget and refinancing of debt is done at the lowest possible cost on medium to long time basis, all within the prudent limits of risk,” the fiscal policy of the State government said.
Not only the State’s debts, but its outstanding guarantees are also increasing. “We are taking outside loans for Mission Bhagiratha, 2BHK housing scheme, Irrigation projects among others for this year too,” Finance Minister E Rajender said.
Explaining the debt burden on the State, Rajender said even if the debts rose to `1.80 lakh in 2018-19, it would be 21.39 per cent of the GSDP as against the stipulated percentage of 25 per cent. “The possibilities of raising money through extra-budgetary sources will also be explored to supplement the resources of the State for investments in capital assets. Thus, the strategy is to try raise borrowing for productive investments within prudent limits,” the fiscal policy laid in the House stated.
HOW THE STATE’S DEBTS INCREASED (in crores)
Category 2016-17 (actual) 2017-18 (RE)
Market borrowings Rs 89,707.84 Rs 1,11,535.87
Loans from Centre Rs 8,406.00 Rs 9,010.28
Special securities issued to the NSSF Rs 10,472.80 Rs 9,867.42
Borrowings from fin institutions/banks Rs 12,649.13 Rs 13,742.73
Provident funds, insurance funds etc Rs 6,594.10 Rs 6,976.91
Total Rs 1,27,829.87 Rs 1,51,133.21