HYDERABAD: As the Reserve Bank of India (RBI) has denied permission to the Telangana government to participate in the auction for open market borrowings scheduled on May 17, the official sources admitted that the State government may have to go in for a drastic cut in expenditure on some of the populist schemes.
The State proposed to raise Rs 53,000 crore through open market borrowings. With no loans, the State is planning to mop up its own resources to the tune of Rs 30,000 crore to Rs 40,000 crore. However, increasing own revenue is a herculean task.
The officials, however, clarified that there were no plans to stop the payment of salaries of the State government employees, Aasara pensions and Rythu Bandhu. "There will be a cut in expenditure on some welfare schemes," the sources said. But non-spending on the welfare schemes announced by the State government may impact the ruling TRS in the next Assembly polls.