Govt. treading cautiously to mobilise resources for four schemes set for Jan. 26 launch-OxBig News Network

The State government is apparently treading cautiously with regard to mobilising resources for the four flagship schemes that are scheduled to be launched on January 26, coinciding with Republic Day.

The four schemesz, including Rythu Bharosa, Indiramma Atmiya Bharosa, ration cards and Indirama Illu, the weaker section housing programme, are expected impose an additional burden to the tune of ₹45,000 crore on the State exchequer. The government has revised its schedule of open market borrowings for the last quarter of the current financial year in this direction.

The State has indicated that it will raise market borrowings to the tune of ₹30,000 crore in January-March quarter through auction of State Government Securities as part of the weekly auctions conducted by the Reserve Bank of India (RBI). Accordingly, it has indicated that it would participate in the auction of securities in the weekly auction conducted by the RBI on all four Tuesdays of January.

The State has participated in the auctions conducted on January 7 and raised ₹3,000 crore in three tranches with the maturity period ranging between 24 and 30 years. However, it did not participate in the SGS auctions on January 14 and is not participating in the auctions to be conducted on January 21, according to the schedule released by the apex bank on Friday.

Finance department officials were tight-lipped when prodded about the revised schedule of borrowings. “We are preserving for the future also,” was how an official responded. Asked whether the Union Finance Ministry had imposed any fresh restrictions limiting the quantum of borrowings that can be raised by the State, he told The Hindu that there were no such restrictions.

The State continues to depend on the financial accommodation instruments provided by the RBI owing to the tight financial situation it has been facing. In November, it tapped into the special drawing facility for all the 30 days, raising ₹4,649 crore. Further, it utilised Ways and Means Advances for 23 days, securing ₹1,900 crore, and resorted to overdrafts for 11 days, raising ₹633 crore, according to the RBI bulletin.