BRS government exploits overdrafts, including Rs 354,250 crore, for a total of 145 days: CAG
Hyderabad: Telangana’s cash balance during the 2023-24 BRS government term fell to just Rs 1.33 crore, despite the Ways and Means of Progress (WMA) and Special Drawing Facilities (SDF). The Auditor General and the Auditor General (CAG) said in its report that this forced the BRS government to rely on overdrafts for a long time.
According to a CAG report submitted at Thursday’s general meeting, the BRS government used the overdraft within 145 days after its cash balance was below the limit set by the Reserve Bank of India (RBI).
Overdrafts are often used for short-term liquidity demand, but extended dependence suggests an imbalance between fiscal pressure and income and expenditure, the report said.
Overdrafts also incur interest expenses, increasing the state’s financial burden. Overdraft periods exceeding the standard usually require special RBI approval, highlighting the severity of the situation. The report said states resorted to the WMA and SDF before taking the overdraft, which made Telangana’s long-term reliance on the facility very unusual and reflected a deeper financial mismanagement.
The extended use of overdraft highlights the need for stronger fiscal management strategies to reduce reliance on short-term lending and ensure better financial stability, CAG said.
