Loans necessary for State’s development: Etela Rajender

Finance Minister Etela Rajender said there was need for development of the State and borrowing loans from the Centre and other institutions was necessary for the overall development.

By Author   |   Published: 7th Nov 2017   7:55 pm Updated: 7th Nov 2017   7:57 pm
Etela Rajender
File Photo: Finance Minister Etela Rajender

Hyderabad: The State government has borrowed over Rs.8,440.12 crore from the Centre while another Rs.14,044.94 crore have been taken as loans from financial institutions, including National Small Savings Fund (NSSF), Finance Minister Etela Rajender said on Tuesday.

The quantum of debt burden on the State government so far is Rs.1,35,554.03 crore and the interest impact on the State exchequer during the financial year 2016-17 was Rs.8609.19 crore.

Replying to a question raised by Congress MLC Ponguleti Sudhakar Reddy during Zero Hour in the Legislative Council, the Minister said there was need for development of the State in a progressive manner and borrowing loans from the Centre and other institutions was necessary for the overall development of the State. The government can borrow loans as per the guidelines of the Central government, he said.

While replying to another question posed by MLCs Palla Rajeswar Reddy and Bodakunti Venkateswarlu, Irrigation Minister T Harish Rao said the location of Kanthanapalli Barrage has been shifted to Tupakulagudem to avoid submergence of villages and minimize the land acquisition along with diversion of forest land.

Owing to change in the location, land acquisition of Adivasis area and their displacement was avoided in addition to saving of Rs. 224 crore. The expected date for completion of the project was September 2018, Rao added.