Telangana's debt projected to reach Rs 6.71 lakh Cr by the end of FY24: State government

Hyderabad, Dec 20 (PTI) Telangana will have an outstanding debt of Rs 6,71,757 crore, including non-guaranteed loans of corporations or institutions by the end of FY 24 against Rs 72,658 crore in 2014-15, the state government said.

Telangana State Finances-White Paper was tabled by the government in the Legislative Assembly and there was a short discussion on it.

The debt servicing burden of monies which are borrowed on the budget and off-budget has increased enormously and is consuming 34 per cent of the state's revenue receipts while the salaries and pensions of employees consume another 35 per cent of the state revenue receipts, a government document said on Wednesday.

"The total debt on the books of the State, guaranteed and serviced by the State, guaranteed but not serviced by the State, and not guaranteed and serviced by the institutions is Rs 6,71,757 crore," it said.

Further, as per budget estimates for FY 2023-24, the debt under FRBM (Fiscal Responsibility and Budget Management Act, 2003) is estimated to increase to Rs. 3,89,673 crore.

In Telangana, there is a gap of almost 20 per cent between the budgeted and the actual expenditure. This figure is not only high when compared to other states, but also in comparison to the expenditure achieved in united Andhra Pradesh, the document said.

The new government is determined to implement all the six guarantees which are promised by the party based on which the people of Telangana had given the mandate for change, it said.

Terming the White paper as "full of mistakes," BRS member and former Finance minister T Harish Rao said it aimed at blaming the previous government.

He further said the previous government has invested a lot of money on asset creation.

The BRS leader listed out the previous government's achievements amid objections from the treasury benches.

Objecting to Harish Rao's comments, Chief Minister Revanth Reddy said whatever Rao said was factually incorrect.

He said the previous government had raised loans by projecting that there will be revenue generation from Kaleshwaram Project and Mission Bhagiratha, drinking water scheme.

Replying to the debate Revanth Reddy said the government wanted to keep the facts before the people and hence tabled the White Paper.

He said some figures in the document were taken from the Comptroller and Auditor General reports while some from the Reserve Bank of India.

According to him, the financial situation in the previous BRS rule had become dire and the aim of the White Paper is not to insult anyone.

He further said the Congress government will seek AIMIM's suggestions also to make Hyderabad the best city in the country.

Reddy said he spoke to Union Minister G Kishan Reddy seeking appointment with Prime Minister Narendra Modi.

Minister Uttam Kumar Reddy said the Civil Supplies Corporation plunged into a loss of Rs 11,000 crore with Rs 56,000 crore debt.

He further said the sinking of the Medigadda barrage of Kaleshwaram Project was "criminal negligence"and "poorly designed and poorly built." "There will be an inquiry on the issue and the guilty will be punished," he said.

During the debate on the White Paper, in an indirect reference to Revanth Reddy, Harish Rao made some comments which were expunged by the Speaker Prasad Kumar.

Legislative Affairs Minister D Sridhar Babu and Speaker Prasad Kumar asked the BRS leader to withdraw his comments.

"It is not fair to comment on the Leader of the House," Prasad Kumar said.

Replying to the request, the BRS leader said he did not take the CM's name and the ruling party members also made comments against the opposition.

BJP MLA Maheshwar Reddy sought to know how the Congress government will fulfill its poll guarantees while noting that the state's finances are in doldrums.

AIMIM floor leader Akbaruddin Owaisi pointing out "some mistake" in the "White Paper", asked the government what the purpose of the document was at this point in time.

He blamed bureaucrats for the "bungling" figures in the document. PTI

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