Hyderabad: The Centre has imposed a cut in Telangana’s borrowing limit for February, reducing the state’s request from Rs 10,000 crore to just Rs 3,000 crore. This follows a similar cut of Rs 4,200 crore in January, adding to the state’s financial constraints.
The Telangana government had sought approval to raise Rs 30,000 crore in open market borrowings for the final quarter of the fiscal year 2024-25 (January-March). The proposal included Rs 10,000 crore each for January, February, and March through the auction of state government securities by the Reserve Bank of India. However, the Centre granted permission for only Rs 5,800 crore in January and Rs 3,000 crore in February.
For February, the state had planned to raise funds in four phases — Rs 3,000 crore on February 4, Rs 2,000 crore on February 11, Rs 2,500 crore on February 18, and Rs 2,500 crore on February 25. However, the Centre permitted the borrowing scheduled on February 4, rejecting the rest.
Similarly, the government…
