Telangana State Planning Board (TSPB) vice-chairman B. Vinod Kumar has observed that the “Centre has been violating the Fiscal Responsibility and Budget Management (FRBM) Act norms in making huge borrowings while Telangana is well within the limits of the Act, although the Centre is creating hurdles for Telangana’s borrowings”.
He made it clear that Telangana was using every rupee of such borrowings as capital expenditure and development of infrastructure and that the State’s own Tax Revenue (SoTR) was enough to meet salaries of employees and regular schemes such as social security pensions, Rythu Bandhu and Rythu Bima.
Mr. Vinod Kumar, addressing a press conference here on Tuesday, pointed out that it was the Prime Minister-led NITI Aayog that had acknowledged the financial prudence and discipline of Telangana as it had been repaying loan instalments in time every month, including those borrowed for public sector undertakings, with the State Government guarantee.
