Govt. to borrow ₹1,000 cr. more to meet immediate commitments

Fresh loan aggregates to ₹13,500 crore this quarter

The State government decided to raise another tranche of open market borrowings (OMB) on Wednesday to meet its immediate financial commitments including the payments still due under the Rythu Bandhu scheme. The government will raise ₹1,000 crore state development loan through auction of securities by the Reserve Bank of India. This will take the entire open market borrowings during the first quarter of the current financial year to ₹13,500 crore, probably the highest quantum of OMB during a single quarter in recent years. This is ₹ 1,000 crore higher than ₹ 12,500 crore raised during the first quarter of the previous financial year when revenue fell steeply following the lockdown imposed due to COVID-19 pandemic and the restrictions that followed. The government has raised ₹12,500 crore loans from open market so far this year and this includes ₹7,500 crore obtained in four tranches during June alone.