In a notable development, the Centre has increases the FRBM (Fiscal Responsibilty and Budget Management) limit for taking loans for Telangana, which will allow the state to take more loans for development programs.
According to informed sources, the union finance department issued a GO increasing the FRBM limit from 3.25% to 3.5% of the state's GDP.
This will help the state government get about Rs 3,575 crores in additional loans for development programs.
It appears that repeated pleas by Chief Minister K Chandrashekar Rao in this regard have gotten this positive result. The official limit is only 3%, and the state had already gotten it enhanced to 3.25% last year since it is a revenue-surplus state and is therefore entitled to upto 3.5% if permitted.