The Central government very famously rejected the Andhra Pradesh government’s request for more loans, making it clear that the AP government has to put forth all of its financial details so that the Centre could then make a decision on whether or not more loans can be provided to the government. This is the same way the Centre is dealing with the governments of other states as well, so it’s nothing to be worried about.
The Centre has now rejected the request of the Telangana government for more loans. Initially, the government sought a loan of Rs. 15,000 Crores, intending to better the situation in the state, but upon the loan being rejected, the government sought a loan of Rs. 5,000 Crores, but the Centre rejected that too.
With both the Telugu governments not getting loans this year, everyone is wondering how the governments will run the show in the states, and what could be done to get the loans, as they are said to have crossed the FRBM limits. However, it would be very difficult if the Centre doesn’t show mercy.