Telangana Budget-Map-KCR,TS at cross roads as interest burden loads onWhile the Telangana government is processing for its first ever budget to be presented to the legislature in the first week of November, the interest burden of the loans taken by the earlier governments has left it at cross roads. The T government has to pay an amount of Rs.6,000 crores as interest for the loans secured in the undivided state.

The total loans secured in undivided AP have been divided between AP & Telangana in the ratio of 58:42 and the loan share of Telangana amounts to Rs.67,359 crores. Though Telangana government is putting forward the concept of formation of a new state and asking Centre to relax FRBM Act, the Centre is giving no assurance to relax the FRBM Act for Telangana.

As the newly formed state would take atleast 3-4 years to achieve financial security, just four months old newly formed state is hoping big way that the Centre would consider this. As there is no indication of relaxation of FRBM Act, T government is trying to get more loans to pay the interests. It may possibly go for securing loans the way the earlier governments did by either selling bonds in open market, more loans from Centre or from external agencies.