Opinion: Telangana’s legacy—don’t set aside past, build on it

Telangana needs to recognise the strong foundation created during KCR's regime and strengthen it with greater financial discipline, broader economic opportunities and a sustainable future

By Chitikena Kiran Kumar

Telangana’s financial situation presents a picture in which the economic burden is rising even as revenue increases. During the first four months of the financial year 2026–27, the State’s revenue receipts reached Rs 59,642 crore, while revenue expenditure crossed Rs 78,909 crore. As a result, the State recorded a revenue deficit of Rs 19,266 crore. The Congress government has incurred a Rs 33,729.98 crore fiscal deficit by July, equivalent to 57.7 per cent of the annual estimate of Rs 58,458.71 crore. Net borrowings and other liabilities have reached the same level during the period.

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While revenue is increasing, the faster rise in expenditure and debt burden indicates the need for the present government to give serious thought to financial management.

After the formation of Telangana, the leadership of K Chandrashekhar Rao stood out for setting major goals by anticipating the future needs of the newly formed State. His government took significant decisions in irrigation, drinking water, power, rural infrastructure and industrial development, which played an important role in shaping the development direction of Telangana.

Programmes such as Mission Bhagiratha, Mission Kakatiya, major irrigation projects and the expansion of the power sector were not merely efforts to address immediate needs. They reflected a vision to build a stronger Telangana for the future. The present government needs to study that long-term vision and planning approach and take it forward with greater strength.

Growth Indicators

The development of a State cannot be measured only by the amount left in the treasury. Changes in people’s lives, infrastructure created, expansion of irrigation, availability of electricity, industrial opportunities, transportation and rural–urban connectivity are also important indicators of development. When Telangana was formed as a separate State, there were significant infrastructure gaps in several sectors. In such circumstances, setting ambitious goals and investing across multiple sectors was not an easy task.

Under the leadership of Chandrashekhar Rao, the then government took up these challenges and gave priority to infrastructure development. The extent to which those investments have delivered results should certainly be assessed continuously through data, but their role in the development of Telangana cannot be ignored.

Long-term Vision

Irrigation programmes undertaken during Chandrashekhar Rao’s government should also be viewed from this broader perspective. When water becomes available, the impact is not limited to increased agricultural production. Farmers’ incomes, agriculture-based businesses, transportation, storage, marketing and processing activities are also influenced. Programmes such as Mission Bhagiratha brought forward an approach that treated access to drinking water as a basic necessity of people’s lives.

Similarly, measures taken in the power sector had an impact on agriculture, industries and household consumption. This comprehensive approach was one of the major strengths of the previous administration.

It would not be appropriate to say that every decision taken by the previous government was flawless. At the same time, it would be equally inappropriate to dismiss everything that was done in the past. Rao’s long-term vision, his approach of setting ambitious goals, and his emphasis on infrastructure as the foundation for future development offer valuable guiding principles for the present administration as well. The assets created in the past should be used more efficiently so that they can generate higher income, employment and productivity.

KCR’s emphasis on infrastructure development offers an important guiding direction for the present administration. Taking that approach forward should be a natural part of good governance

Development works should not come to a halt. But financial discipline must go hand in hand with development. The present government has the responsibility to explore new sources of revenue, give priority to essential expenditure and ensure that borrowings are directed towards productive sectors.

Borrowing is not inherently bad. When loans are used for creating assets that can generate future income, they can become investments. But as debt increases, economic returns should also increase accordingly. Therefore, the question should not simply be how much debt has been raised. It should also be: What has been created with that debt? What benefits have been generated? How much revenue can be expected in the future?

Looking Beyond Hyderabad

Telangana has opportunities to expand industries, IT, pharmaceuticals, services and agriculture-based industries not only in Hyderabad but also in other parts of the State. Providing skills to young people, encouraging small businesses and attracting investments can help expand the State’s revenue base. If the infrastructure created in the past is effectively connected with these economic opportunities, new sources of revenue can emerge for Telangana.

Welfare is also necessary. However, along with welfare, greater priority should be given to employment generation, skill development, industries, small businesses and agriculture-based value-added sectors. Providing support to people is one aspect, while creating opportunities for them to become self-reliant is another. Only when these two approaches work together can welfare become a source of long-term economic strength.

Accountability in the use of public money is equally important. It should be clear where every rupee has been spent, what benefit it has brought to the people and how much income or productivity each project is generating. Continuing useful programmes of previous governments, correcting their shortcomings and expanding them according to new requirements should be a natural part of good governance.

What Telangana needs today is not to set aside the past, but to recognise the strong foundation created in the past and build an even stronger future upon it. While following the infrastructure and development vision established during the Rao government, the present government must also give special attention to rising debt, the revenue deficit, and expenditure pressures. Telangana can achieve sustainable progress only by maintaining the pace of development while keeping the financial burden under control.

 

(The author is a poet, writer and columnist)