TS for raising FRBM limit to 5%

Telangana government has urged the Centre at the GST Council meeting on Friday to raise the Fiscal Responsibility and Budget Management (FRBM) limit from three to five per cent for borrowing purpose a

Telangana government has urged the Centre at the GST Council meeting on Friday to raise the Fiscal Responsibility and Budget Management (FRBM) limit from three to five per cent for borrowing purpose as the State’s revenue had dipped significantly and its expenditure shot up considerably due to COVID pandemic. Yet, Telangana was in a better position to borrow because its fiscal deficit in the revenues for 2021-22 was expected to touch 23.10% while the aggregate average of all States put together was pegged at 36.3%. Making the point at the meeting, Finance Minister T. Harish Rao said the State was spending heavily in public health but it was getting little assistance from the Centre. He sought liberal funding for the States as this was the last financial year for payment of compensations to them for migrating to GST regime. The funding was all the more important in view of poor financial position of State governments, he said reminding the Centre that Telangana was receiving the least compensation in the country.