Jaitley gives a hope on KCR’s longstanding demand

Telangana Chief Minister K Chandrasekhar Rao since the day he assumed office, was demanding a relaxation in FRBM norms which will allow the state government to go for more loans to fund his ambitious plans. He even toured Delhi many times on the same issue and met Modi and other big wigs.

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The Union Finance Minister, Arun Jaitley in his budget speech a short while ago, mentioned about this demand. He did not allow any immediate increase but announced an appointment of a committee to look in to this demand of Telangana and other states. So, this announcement will keep Telangana government interested.

Currently according to the Fiscal Responsibility and Budget Management (FRBM) act, only 3% loans are allowed to the states. Telangana government is demanding to relax that to 3.5% to wealthy states. They say as they are financially good, they can afford to take more loans than other states.