Raise FRBM Cap, Vaccination Rate: Telangana To Modi

Telangana Finance Minister T Harish Rao today urged the BJP-led Centre to increase the state's borrowing limit under the Fiscal Responsibility and Budget Management (FRBM) Act and to speed up the Covid-19 vaccination drive in the state and the country.

The minister attended the 44th GST Council meeting, which was chaired by Union Finance Minister Nirmala Sitharaman, virtually from the BRKR Bhavan.

During the meeting, Rao urged the Centre to okay an increase in the state's borrowing limit, from 4% to 5% of the GSDP.

He pointed out that the second wave of the Covid-19 pandemic had forced the state government to impose a lockdown in Telangana and that as a result the state had incurred losses of Rs 4,100 crore in May alone.

"The Covid-19 pandemic has led to a massive economic slowdown across the world. The same is true for Telangana. On top of that, we do not know how long such lockdowns will be required, especially since scientists across the world are already raising concerns about the distinct possibility of the outbreak of a third wave. If the Centre increases the FRBM-imposed borrowing limit of the state to 5% from the current 4, it will help us procure much-needed funds during this challenging period which has left our government cash-strapped. The increase in the borrowing limit will help us generate employment and will help Telangana's economic recovery," Rao added.

Reports from the minister's office suggest that though the Centre had not been too convinced by a similar demand that Rao had made at the last GST Council meeting, this time around, it assured him that it would look into the matter.

Apart from asking for an increase in the state's borrowing limit, Rao also appealed to the GST Council to start free vaccination drives for all age groups in order to immunise the largest possible number of people at the earliest. He claimed that this important step in containing the spread of Covid-19 would go on to reduce the impact of the pandemic on the economy. In order to procure the required number of vaccines for the immunisation program, he suggested that vaccines be imported from overseas at a massive scale.

"The pandemic has had a devastating effect on the economy of India. As scientists warn of an unavoidable third wave, it is important to vaccinate all sections of society at a large scale to minimise the impact of this possible third wave," the minister said.

Further, he extended his support to a proposal made by other ministers, including Meghalaya Chief Minister Conrad K Sangma, to reduce the taxes being levied on Covid-19 treatment supplies like medical oxygen, hand sanitisers, and ventilators.

Chief Secretary Somesh Kumar and other senior officials from the finance, revenue, medical and health departments also attended the meeting.