Telangana wants Borrowing Limit Raised to Spur Development

The Telangana Government today asked the Centre to raise the state's borrowing limit to allow it to grow faster as Chief Minister K Chandrasekhar Rao expressed happiness over its surplus status vis-a-vis finances.

"Our borrowings limit should be increased. We are like landlord (a big farmer) today. So, we should be let to develop more. We have FRBM (Fiscal Responsibility & Budget Management Act). There is borrowing limit. It was increased for us to some extent. It was raised by about Rs 4,000 crore.

"We told Modiji that you will not give special package for surplus state. But, when we are good and maintain fiscal prudence, we should not be punished," he told reporters.

Mr Rao said he has taken up the matter with the Centre and the Prime Minister and Finance Minister have responded positively to the request.

Noting that the Finance Commission has now confirmed Telangana is a surplus state (the other being Gujarat), Mr Rao said his long-held argument that it would be a surplus state post-bifurcation of Andhra Pradesh has been proved right.

Asked about expectations from tomorrow's Union Budget, Mr Rao said Telangana cannot have big expectations as it is a surplus state.

However, special requests have been made and new kind of policies are expected in the Budget. Some Central schemes are expected to be transferred to states and it remains to be seen if funds would also come accordingly, the Chief Minister said.

Mr Rao appreciated the Centre's move to raise the states' share in Central taxes (as suggested by 14th Finance Commission).

To a query, he reiterated that Telangana would be a power surplus state by 2018. Andhra Pradesh is denying the rightful share of electricity to Telangana, Mr Rao alleged.

On the Railway Budget, Mr Rao expressed happiness that funds have been sanctioned for certain projects in Telangana. But it would continue to pursue demands like setting up a coach and wagon factory in the state.

The Chief Minister said the Budget session of Telangana Legislative Assembly would begin from March 7.

He announced that financial assistance to 1.70 lakh beedi workers would begin from March 1.

To a query on his remarks on those who have settled in Hyderabad by migrating from different places, he reiterated that such people should not be called "settlers".

The term "settlers" is often used with reference to Seemandhra natives.