Telangana’s outstanding debt is Rs 3.89 lakh crore: RBI report debunks false Congress claims
In its latest report "Handbook of Statistics on Indian States", the Reserve Bank of India (RBI) has debunked the Congress government's claims of Telangana's Rs.7 lakh crore debt, lending credence to assertions by the BRS.
Hyderabad: Telangana’s outstanding liabilities as of March 2024 stood at Rs.3,89,673 crore, with guarantees for loans obtained by government organisations pegged at Rs.38,867.4 crore. In its latest report “Handbook of Statistics on Indian States”, the Reserve Bank of India (RBI) has debunked the Congress government‘s claims about Telangana’s outstanding debts, lending credence to assertions by the BRS.
The RBI report is in stark contrast with the Congress government’s inflated figure of Rs.7 lakh crore. These outstanding loans include State Development Loans (SDLs), UDAY scheme, and National Social Security Fund (NSSF), as well as loans from NABARD, LIC and other national banks, internal debts, Central loans, and others.
The outstanding debts increased from Rs.72,658 crore in 2014-15 to Rs.3.89 lakh crore in 2023-24, while guarantees shot up from Rs.18,265.2 crore to Rs.38,867.4 crore. Notably, the period 2017-18 saw a sharp increase to Rs.1,60,296 crore, reflecting significant State investments in infrastructure and welfare schemes. Together, they account for an outstanding debt burden of Rs.4,28,540 crore. This amount includes the loans amounting to Rs.6,115 crore obtained by the Congress government after coming to power in December last year.
However, the Congress government, in its white paper on State Finances in December last year, claimed Telangana’s debt had ballooned to Rs.6.71 lakh crore by November 2023 and further escalated to Rs.6.8 lakh crore by March 2024. Since then, Congress leaders have been claiming that the previous BRS government left the State with a debt burden of Rs.7 lakh crore.
But, the RBI’s official data places the debt at a significantly lower figure, contradicting Congress’s allegations that the debt had grown tenfold since the State’s formation in 2014.
Former Finance Minister and senior BRS MLA T Harish Rao meticulously dismantled Congress’s claims earlier. He pointed out that the BRS government inherited Rs.72,658 crore in debt when Telangana was formed and had also absorbed Rs.11,609 crore of pre-formation loans under Special Purpose Vehicles (SPVs). Adjusting for these numbers, the effective debt incurred by the BRS government was Rs.4,26,499 crore over nine and a half years, rather than the Congress’s claim of Rs.6,71,757 crore.
Ironically, in a bid to seek restructuring of these debts from the 16th Finance Commission earlier this year, Chief Minister A Revanth Reddy unknowingly admitted to the economic progress under the K Chandrashekhar Rao. He informed the 16th Finance Commission that Telangana’s GSDP (Gross State Domestic Product) growth was at 12.9 per cent CAGR (compound annual growth rate), its contribution of 5.1 per cent to the national GDP, and recording a per capita income of Rs.3.5 lakh. These parameters demonstrate sound fiscal management under the BRS regime.
The BRS has accused the Congress of engaging in propaganda to malign its governance. By including non-obligatory loans and inherited debts in its calculations, the Congress government distorted the financial picture. Harish Rao called the inflated claims a deliberate attempt to mislead the public and undermine Telangana’s achievements under the BRS leadership.
