Telangana Faces Cash Crunch:- The Finance Department of Telangana has sent an SOS to the government of the state about the financial condition in the state. The situation arose after the Centre stopped sending loans to Telangana in April. As per the information from the official sources, the Finance Department alerted the office of the Chief Secretary and the Chief Minister's Office to mobilize Rs 14000 crores in the first week of June to meet the needs of the state. The payments of salaries and the pensions for the retired have to be done in the first week of June. The debt repayment too has to be done for the month of May along with the repayment of the principal amount and interest in June.

Telangana Chief Minister KCR will soon chair a Cabinet meeting to take a stock of the financial crisis and discuss about the further course of action to be taken. KCR will discuss about the steps to be taken if the Centre denies funds for the state in the month of June. KCR is keen to move to Supreme Court against the Centre if it stops loans in June. The Centre has been allowing the states to raise loans but the permissions are denied for Telangana. The Centre calls Telangana a revenue surplus state and Telangana has the lower debt to GSDP ratio in the country. The Finance Department of Telangana is clueless about how to arrange the funds for the month of June to meet the deadlines. Rythu Bandhu and Aasara Pensions should be funded.

The state government needs a credit of Rs 7500 crores in the bank accounts for 62 lakh farmers in Telangana. The Finance Department hopes that they can mobilize Rs 6000 crores through own tax of the state and the state will face a deficit off Rs 9000 crores.