Telangana falls into deep financial crisis as dues cross Rs 35,000 crore

Telangana is in deep financial trouble with over Rs 35,000 crore in pending dues. Contractors, employees, and welfare beneficiaries await payments. Revenue is falling short, borrowing is rising, and protests are spreading across the State under the Congress-led government

Hyderabad: The once-surplus State of Telangana is now facing a severe financial crisis. In just 22 months, the Revanth Reddy-led Congress government is burdened by over Rs 35,000 crore in pending dues, exposing the hollowness of the tall promises made by the national party.

The crisis is not just on paper, but it is playing out on the streets. Of the total pending dues, contractors alone are awaiting nearly Rs 10,000 crore, while salaries and retirement benefits for employees account for another Rs 8,000 crore. Welfare and development schemes make up the rest, including a staggering Rs 10,000 crore in fee reimbursement dues, Rs 1,300 crore for Aarogyasri and other commitments totalling over Rs 17,000 crore.

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The financial crunch has triggered widespread protests. Small contractors recently staged a dharna at the Secretariat demanding immediate payments, while sarpanches and ration dealers, whose dues amount to Rs 700 crore and Rs 85 crore respectively, are also pressing for relief. Even more alarming, salaries of frontline staff, including ASHA and Anganwadi workers, sanitation workers, and part-time, outsourced, or contract teaching and non-teaching staff of residential school teachers and others, are stuck without salaries for three to 20 months.

The numbers are shocking. Revenue receipts till July stood at Rs 50,270 crore, but revenue expenditure ballooned to Rs 62,835 crore. Despite borrowing Rs 24,669 crore, the government spent barely Rs 5,988 crore on capital works. The rest has been diverted to cover routine expenses. Telangana is today borrowing just to stay afloat, a situation unthinkable a decade ago.

Financial experts warned that the Congress government’s failure is two-fold, as it had neither stabilised revenues nor honoured welfare commitments. Instead, the State’s governance has effectively ground to a halt, with welfare blocked, development stalled, and credibility eroded.

They feared that if this financial paralysis continues, Telangana might follow the Congress-ruled Himachal Pradesh, which faced similar challenges a year ago. The Himachal Pradesh government has recently withdrawn the 2022 pay revision notification, resulting in pay cuts amounting to Rs 5,000-15,000 to around 14,000 employees under 89 categories.

• Telangana is facing a financial crisis with over Rs 35,000 crore in pending dues
• Contractors, employees, and welfare beneficiaries await payments running into thousands of crores
• Protests erupt as salaries of frontline staff remain unpaid for months
• Revenue receipts lag behind expenditure, forcing the State to borrow just to survive
• Experts warn Telangana risks following Himachal Pradesh’s path of pay cuts and stalled governance
• Total Pending Bills: Rs 35,000 crore
• Contractors’ Bills: Rs 10,000 crore
• Fee reimbursement dues: Rs 10,000 crore
• Retirement benefits and other arrears to employees: Rs 8,000 crore
• Aarogyasri dues: Rs 1,300 crore
• Pending bills to former Sarpanches: Rs 700 crore