The other day we have seen Andhra Pradesh going in to financial crunch and things are not any different for Rich Telangana too. The state ran out of its finances and oral instructions were given to stop all the bills. All the HODs were instructed not to draw money except for salaries. Fees reimbursement and pension schemes will be affected as a result.
Telangana government is selling bonds in the open market this Thursday to raise 1200 Crore. Already the state had auctioned bonds seven times in first six months of this financial year to raise 9349 Crore. According to FRBM norms, the state can only borrow 14000 Crore per year and so the rest of the year is going to be even tough.
Telangana Chief minister K Chandrasekhar Rao is taking up the issue of relaxation of FRBM norms with the center for a long time. Things seem to be not any different for the state that claims to be revenue surplus and second richest after Gujarat. If this is the case with Telangana, the condition of the deficit budget AP is understandable.
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