The State government continued to depend on the financial accommodation facilities provided by the Reserve Bank of India for most part of the previous financial year 2022-23.
The State availed funds through special drawing facility (SDF), ways and means advances (WMA) and overdraft (OD) in March on the lines of previous months. Funds to the tune of ₹581.17 crore were availed through the special drawing facility for 24 days and drawl through ways and means advances accounted to ₹1,422.24 crore over 21 of the 31 days of March. The State government resorted to overdraft facility for 12 days drawing an amount totalling to ₹895.23 crore during the month.
The situation was no different in February when the State utilised special drawing facility for all the 28 days amounting to ₹651.36 crore and ways and means advances of ₹1,418.16 crore on 25 of the 28 days of the month. An amount of ₹736.51 crore was drawn through overdraft during the month, according to the RBI bulletin.
From a stage when it was against availing of ways and means advances and other financial accommodation facilities, the State had to depend on these instruments as the revenue receipts were not sufficient to meet the financial requirements for spree of welfare and developmental programmes. Coupled with this were the restrictions imposed by the Union Finance Ministry on the quantum of open market borrowings that forced the State to look for alternatives.
The State government is struggling hard to raise funds to the tune of ₹8,000 crore for payment of first instalment of Rythu Bandhu, farmers investment support schemes, to over 60 lakh farmers. At the same time, the State government had to fulfil promises like Dalit Bandhu, the one time financial grant of ₹10 lakh each to dalit families, and grant for construction of houses by poor families who own lands, which entail substantial amounts during the current year, especially in the run up to the elections due towards the end of the year.
