In just 8 months, Telangana debt touches Rs 50,118 crore
Govt relies on borrowings, accumulates Rs 35,000 cr debt in last 5 months alone
Hyderabad: As the Revanth Reddy-led Congress government in Telangana marks 250 days in power, a fresh borrowing of Rs.3,000 crore through market loans on Tuesday has pushed the State’s debt to a staggering Rs.50,118 crore in just eight months. Despite its criticism of the previous BRS government alleging excessive borrowing, the Congress is not hesitating to borrow left, right and centre.
In stark contrast to its pre-election rhetoric, the Congress has accumulated nearly Rs.35,000 crore in debt during the last five months alone, against the projected Rs.69,572.48 crore in the current financial year to be sourced through market borrowings, Central government loans, deposit transactions and other loans.
Experts warn that if this borrowing spree continues, the debt might exceed budget estimates. The Revanth Reddy administration has already revised its budget estimates, increasing the projected borrowings from Rs.57,112.48 crore during the Vote-on-Account in February to Rs.69,572.48 crore in the full budget introduced in July.
The pattern is not new with the Congress. During the previous financial year, the State’s debt exceeded its budget estimates, with borrowings being revised from Rs.38,235 crore under the BRS regime to Rs.49,618 crore after the Congress assumed power.
Critics argue that Chief Minister A Revanth Reddy’s lack of experience is contributing to an additional financial burden on the people of Telangana. Despite the significant loans, there has been little visible progress in terms of infrastructure or development projects undertaken by the State government in the last eight months. Protests from contractors, sarpanches and other stakeholders over unpaid bills underscore the government’s failure to clear major pending payments.
Capital expenditure, crucial for development, also remained underwhelming. The Congress government allocated only Rs.33,486.5 crore, just 11.5 per cent of the total budget of Rs.2,91,159 crore for 2024-25, towards capital projects. In the last eight months, around Rs.23,540 crore has been spent on capital expenditure, compared to Rs.28,815 crore during the previous eight months under the BRS.
While Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka defended the borrowings, claiming monthly interest payments of Rs.7,000 crore, data from the Comptroller and Auditor General of India (CAG) suggests otherwise. The government has paid approximately Rs.19,632 crore towards loans and interest payments from December 2023 to June 2024, averaging about Rs.2,804 crore per month, far less than the claimed amount.
