It is politics that would decide whether or not Telangana could go in for open market borrowings for this year. The Union Finance Ministry officials, after hearing the arguments of the State Finance officials for allowing the State to borrow, left the matter to Union Finance Minister Nirmala Sitharaman to take a call.
After the Union Finance Ministry denied the permission for Telangana to raise Fiscal Responsibility and Budget Management Act (FRBM) loans, Special Chief Secretary (Finance) K Ramakrishna Rao left for Delhi on Friday and stayed put there for five days. TS submitted necessary letters and required pieces of evidence to substantiate his argument for permission to go in for open market borrowings.
According to sources, the Union Finance Ministry officials are ‘convinced’ with his arguments. However, the Union Finance Ministry officials were non-committal on the State’s FRBM loans. The finance ministry officials would now refer the matter to the Union Finance Minister.
It is clear that the finance ministry officials are convinced. But, they cannot take any decision. A political decision is required to allow TS to raise the FRBM loans, that the Finance Ministry officials reportedly informed the State government officials. Because of serious political differences between KCR and Narendra Modi, Telangana’s case may not go up to PM Narendra Modi’s level. The Union Finance Ministry will take a decision, which is clear to the State government.
But, in the present political scenario, especially after Chief Minister K Chandrasekhar Rao began attacking the BJP-led Central government, it remains to be seen if the ‘political decision’ on borrowings will be in the State’s favour or not. There is also a likelihood of the entire issue going to the Prime Minister as both the TRS and BJP are locked in an intense political war in the State.
But in the Federation of Union set up it is not good on the part of the Union Government to put spokes on the development of the non BJP ruled State Governments. Of course, it is out of reach of the Team Narendra Modi to see the nation developing. In fact they are mortgaging nation to Gujarati businessmen to achieve their political ideology to make nation poor and starving in promoting India like that of Sri Lanka to compel the subjects to accept RSS proposal to make India into Hindu State.
If the ‘political decision’ is positive, the State would be able to raise some portion of the Rs 53,000 crore market borrowings it proposed in the 2022-23 Budget. If not, then it may take legal recourse. Till date, no TRS leader has made any official comment on the Centre’s denial to State to raise FRBM loans. KCR should restrain from abusing the process of the State Economy in diverting its monies to the irrelevant issues.