HYDERABAD: The TS government’s estimated outstanding public debt will be Rs 2,86,804.64 crore, according to the Budget Estimates of 2021-22. The outstanding debts in 2019-20 was Rs 2,05,858.33 crore but the revised estimates are Rs 2,45,282.19 crore.
According to the Statement of Fiscal Policy tabled in the Assembly on Thursday, “The main objective of debt management in the State is to ensure that the financing of the Budget and refinancing of the debt is done at the lowest possible cost in medium to long term, all within prudent limits of risk... The State government has been raising debts from the market with a tenure of even 40 years, within the borrowing limits set under the FRBM Act. 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 explore raising borrowings for productive investments within prudent limits.”
All the borrowings are being utilised for capital expenditure, which will result in income-generating assets and more income to the people, it stated. Through higher expenditure by the people, it is expected that the revenues will improve.
With this, the government is unlikely to face any problems in servicing the debts. The FRBM Act stipulates to limit the amount of annual incremental risk weighted guarantees to 200 per cent of the total revenue receipts in the last fiscal. The guarantees are within these limits.