Posted 12/13/2023, 4:24:59 AM
Telangana's Hefty Outstanding Guarantees Limit Fiscal Room for New BRS Government
- Telangana has the 2nd highest outstanding guarantees in India at 1.35 lakh crore, after Uttar Pradesh (1.71 lakh crore)
- Outstanding guarantees are loans taken by state corporations backed by state government
- These guarantees are seen as liabilities of the state government
- Fiscal Responsibility rules limit amount of new guarantees Telangana can take on
- Questions remain how new BRS government under Revanth Reddy will navigate fiscal constraints