Granting relief to the Congress government in the state, the Center approved the state’s request to raise an additional loan of Rs 9,000 crore through the auction of bonds in the last quarter of this financial year.
After coming to power in the state, the new Congress government struggled financially as the former BRS government had exhausted its annual quota before the Assembly elections. The newly elected chief minster Revanth Reddy was forced to seek the Union government’s approval to raise additional loans.
The CM had met Prime Minister Narendra Modi and Union finance minister Nirmala Sitharaman in Delhi on December 26 to bring to their notice that the previous government had exhausted the 2023-24 loan limit, restraining the new Congress government from raising loans for the rest of the fiscal year.
Reddy complained that the BRS government had pushed Telangana state into a debt trap with its financial mismanagement and urged them to sanction additional loans.