The State Government has decided to raise ₹3,000 crore market borrowings through auction of securities from the Reserve Bank of India (RBI).
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The State Government has submitted an indent for raising the amount during the auction of securities to be conducted on May 7. In the process, the Government made small modifications to its borrowings calendar during the firth quarter of the current financial year. While it had indicated that it will raise ₹2,000 crore each through auction of securities on April 8 and 23, the Government reduced the figure to ₹1,500 crore each during the two auctions thereby availing space for borrowing ₹1,000 crore. The amount was adjusted for the auction on May 7 wherein the Government will raise ₹3,000 crore instead of the ₹2,000 projected in the indicative calendar of borrowings.
The development assumes significance in the light of Chief Minister A. Revanth Reddy’s assertion that his government was committed to complete crediting amounts under the Rythu Bandhu for Rabi season into the accounts of all eligible farmers by May 8. The Government had so far credited ₹5,777 crore into the accounts of 64.75 lakh farmers out of the 68.99 lakh leaving a balance close to four lakh farmers.
Crediting Rythu Bandhu at ₹5,000 every acre into the accounts of these farmers is likely to require in excess of ₹2,000 crore. At the same time, the government should also credit the amounts pertaining to social security pensions like Aasara into the accounts of eligible beneficiaries and crediting of the amounts into their accounts had started on Saturday.
The Government had accordingly revised its calendar of borrowings to ensure that there was no paucity of funds for Rythu Bandhu. The results of May 7 auction, according to the RBI, will be announced on May 7 and payment by successful bidders will be made during the banking hours on May 8 at Mumbai and at respective regional offices of the Apex Bank.