State’s borrowings close to ₹21,000 crore by August-end

This is ₹5,958 cr. higher than borrowings of ₹14,983 cr. till July

The State government’s borrowings are close to ₹21,000 crore in the first five months of the current financial year.

According to the monthly key indicators for August available with the Comptroller and Auditor General of India, borrowings and liabilities of the State up to August reached ₹20,941.84 crore. This is ₹5,958 crore higher than the borrowings of ₹14,983 crore reported till July.

The borrowings are much higher than the figures projected in the tentative calendar released by the RBI for the first two quarters. The State indicated that it would raise open market borrowings of ₹14,000 crore – ₹8,000 crore in the first quarter and another ₹6,000 crore in the second quarter.

The State raised around ₹12,000 crore between April and June and over ₹8,000 crore from July to September this fiscal through State development loans and auction of securities. The government kept provision in the budget for raising ₹45,509 crore through borrowings during the current fiscal and the amount raised is in line with the projection made in the budget. Chief Minister K. Chandrasekhar Rao and Minister K.T. Rama Rao have however, asserted that the debts obtained for spending on capital assets should not be seen as liability but as investment for the future.

Meanwhile, the State’s revenues continued their impressive growth during the month with tax revenue pegged at ₹9,000 crore. The cumulative tax revenue till August was ₹37,591 crore against ₹28,591 crore of the previous month. Revenue through GST reached ₹12,461 crore against the ₹35,520 crore projected for the year and collection of sales tax was reported at ₹10,590 crore against the projected ₹26,500 crore.

Registration and Stamps department reported cumulative revenue of ₹3,787 crore against the year’s target of ₹12,500 crore and earnings from Excise duties were reported to be ₹6,048 crore (target for the year ₹17,000 crore). Share of Union taxes was ₹2,854 crore (₹8,721 crore), other taxes and duties ₹1,848 crore (₹6,652 crore) and grants in aid and contributions ₹4,183 crore (₹38,669 crore).

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