Hyderabad: The burden of government interests Telangana on account of loans has been increasing and are hard pressed to pay the same. 

The government has to pay interest amounting to Rs 6,000 crore this year and are struggling to make allowances for interest payments in the budget that followed the Centre gives no warranty relax the FRBM Act so far. 

Currently, the outstanding loans of Telangana stand at Rs 67.359 million rupees. These loans were secured in the undivided state and distributed to AP and Telangana in the ratio of 58:42. Installment Loan Andhra Pradesh is Rs 90.809 million rupees. 

It is interesting that the government is trying to Telangana borrow more to pay the interest. However, it is eligible for only Rs 9,000 crore this year as loan FRBM rules which state that the debt should not exceed 3 percent of GSDP. 

The government is unable to allocate Rs 6,000 crore out of this loan amount for interest payments on previous loans. 

Telangana government has sought exemption from the FRBM Act, by reason of being a new state, to guarantee more loans to tide over the current financial crisis. However, there has been no response from the Centre on this issue so far. 

The loans were secured three ways. The first sale of bonds by being driven on the open market, second loans are sanctioned by the Centre and the third by external funding agencies like the World Bank, JICA, etc. 

"We are a new state, formed only four months ago. It takes at least three years to stabilize the financial situation. One can not expect the new state to pay Rs 6,000 crore for the interest of the above secured loans in the undivided state without relaxing FRBM rules, "said Finance Minister Etela Rajendar. 

Meanwhile, the government of Telangana is in the process of finalizing its first budget, which is set to be presented to the legislature on November 5 Sources said the budget would be Rs 85,000 crore, of which 35,000 crore would be spending Rs and Rs 50,000 expenses not plan plan.