The Congress government, which has heavily relied on debt since coming into power, is now preparing to secure an additional Rs. 2,000 crore loan in October. The state finance department has initiated issuing bonds for this purpose.
A bond worth Rs. 1,500 crore with a 15-year tenure, and another worth Rs. 500 crore with an 18-year tenure, have been issued to the Reserve Bank of India (RBI). The RBI is set to auction these bonds on October 1, and once the auction is completed, the funds will be transferred to the state treasury.
Since the Revanth Reddy government assumed office, the state government accumulated around Rs. 80,000 crore debt. This follows a series of recent borrowings: Rs. 2,500 crore on the 3rd of this month, Rs. 1,500 crore on the 10th, and Rs. 500 crore on the 17th.
In total, the Congress government has raised Rs. 4,500 crore in loans just this month, with another Rs. 2,000 crore expected on October 1. The state government continues to secure loans from the RBI each month by auctioning bonds valued between Rs. 5,000 and Rs. 6,000 crore.