On the 21st of April, the Telangana Government took a loan of Rs. 2,000 crores from the Reserve Bank of India (RBI) to meet the financial needs of the State.
This is the second loan taken from the RBI in a week. On the 13th of April, the Telangana Government took a loan of Rs. 2,000 crore. The fresh loan would be paid back in a tenure of 6 years and 8 years with an interest rate of 6.78 % and 6.98 % respectively.
Due to the nation wide lockdown, the State Government is suffering huge losses as there is no source of revenue, 90 % of industries are shut down in the wake of the lockdown.
On top of that, the Telangana Rashtra Samithi (TRS) Government increased the lockdown to the 7th of May, as a precaution to fight the Novel Coronavirus infection in the State. The extension in the lockdown would help the State Government to control the spread of the virus.
Meanwhile, the Telangana Government is expected to raise Rs. 15,500 crore through bond auctions this year. The Central Government on the 20th of April unveiled Rs. 982 crores to the State under its share of taxes for April month, Rs. 269 crore received as Goods Service Tax (GST) compensation for March. With this, the state treasury has added nearly Rs 5,400 crore (4,000 crore from RBI.) The State Government also has the highest competitive bids by investors after Uttar Pradesh and Andhra Pradesh.
On the 21st of April, when the RBI auctioned securities of Telangana Government, 238 competitive bids were filed by the investors.
The money would be used for emergency services, precautionary measures to fight the Coronavirus, welfare programs during the lockdown, financial aid to poor families and distribution of free rice.
As of 10:00 A.M., on the 22nd of April, Telangana reported a total of 928 cases of COVID-19 with 23 fatalities.
Stay tuned for further updates.
