KCR insists on raising the borrowing limit for states

FRBM guidelines for raising resources through borrowings for revenue surplus state should be at par with Government of India, he told Niti Aayog officials

Telangana chief minister K Chandrasekhar Rao today told the representatives of the NITI Ayog that the Fiscal Responsibility and Budget Management (FRBM) guidelines should be similar for both Centre and state governments.

The chief minister brought up this issue with V K Saraswat, member of NITI Ayog, and Ashok Jain, its adviser, who called on him to discuss the state government’s flagship schemes including water grid and restoration of minor irrigation tanks.

It may be recalled that the Telangana government had already urged the Centre to relax the borrowing norms under the FRBM Act to 4 per cent from the present 3 per cent level on a par with the Centre’s borrowing limit. The government had also prepared Budget estimates in anticipation of relaxation to the borrowing limit.

"FRBM guidelines for raising resources through borrowings for revenue surplus state should be at par with Government of India. This will enable the states to invest in capital infrastructure to improve the economic growth," Rao was quoted as saying in a statement issued by the chief minister's office.

Prior to this meeting, the state government officials made a presentation to the NITI Ayog delegation on various schemes announced by the Telangana government.