Telangana may have inherited the surplus budget after the state bifurcation but the newest state of the country is not devoid of financial problems. Going for grand plans, the state government has put up a One Lakh Crore Budget with lot of loans and expectations on Center’s help.
The deficit in the budget is pegged at Rs 17,398 crore which is way ahead of the Telangana government’s eligibility of Rs 10,895 crore loans as per the Fiscal Responsibility Budget Management Act (FRBM). The acts says the loans of any state should not exceed 3 per cent of the state’s GSDP. Telangana government has appealed to the Center to reconsider giving exception to the state given the new state has many challenges before it.
The finance department has written several times to the Center seeking approval to amend the FRBM Act, but there has been no response.The new state Budget is scheduled to come into force from December 2 and the Legislative Assembly has to approve it by November 28.
