Prime Minister Narendra Modi’s NDA government had reported some really sweet news for Telangana government just before the commencement of Telugu New Year, Ugadi. The Union cabinet has reportedly cleared a long-pending demand of the Telangana government.
It has increased the fiscal responsibility and budget management (FRBM) limits which permits an additional 0.5 per cent FRBM limit for the Telangana state. The cabinet took the decision on the recommendations made by 14th Finance Commission.
With an increase of FRBM limit from the current 3 per cent to 3.5 per cent, the newly formed state of Telangana can be availing Rs 3,000 crore worth additional borrowings from other financial institutions. This is indeed a good news for the government and its administration.
Currently it can only borrow about Rs 12,000 crore. The state government has been pitching for the increase since its growth is actually more than the national average of 8.6% and hence it can afford more loans as a wealthy state. Modi would be hailed for this gesture now.
