Telangana government has shifted focus on to procuring more loans to aide the gap between the income and expenditure of the state. The government is gearing up to sell bonds worth 1000 Crores on Tuesday in open market to pool in more funds. With this, the total debt procured by Telangana government so far has reached 4600 Crore.
According to the budget target, the government has to procure 12700 Crore loans only from selling of bonds for the year 2014-15. Despite inheriting a surplus budget after the state bifurcation, Telangana government has proposed a deficit budget just to reach the One Lakh Crore in the first budget after the formation of the new state. Also the severe power crisis is taking a big toll on the new state as they are shelling big amounts to buy power from open market.
On the other side, Telangana government is also eyeing sale of government lands in the capital through open auctions and imposing hefty fines on illegal constructions to pool in more funds.
