State not facing any financial crisis: Etela Rajender

Finance minister Etela Rajender said on Wednesday that the government is moving ahead towards achieving revenue targets for the state in the current financial year. He dismissed the reports that Telangana is facing financial crisis.

Addressing a press conference, along with Special Secretary (Finance) Pradeep Chandra, at the State Secretariat here, Etala claimed that the “The state did suffer due to sudden deduction of Rs 1,274 crore by the Reserve Bank of India (RBI) from the state government’s account towards alleged income tax dues and there were restrictions on finance bill claims for three to four days. But normalcy was restored immediately, “ Rajender said.

He said that the State achieved a GSDP of 6.61% through tax efficiency measures and the state has been showing impressive performance in terms of revenues, except in some areas like regularization of encroached government land and land auctions, which are yet to pick up.

Admitting that Telangana had taken loans of about Rs 1,500 crore, the minister said that the state’s public debt is in line with Fiscal Responsibility and Budget Maintenance (FRBM) which pegs such debt at Rs 6,150 crore for the state. Regarding expenditure, Rajender said that the state government had provided sufficient funds for its flagship programmes.