Telangana in deep financial crisis due to KCR’s debt burden: Revanth

Hyderabad: Chief Minister A. Revanth Reddy said that the Telangana state was staring at a deep financial crisis due to debts incurred by the previous BRS government, rapping it for putting the current government in a position to pay Rs 70,000 crore (of total revenue of Rs 1.3 lakh crore) towards loans, every year.

Addressing a press conference at the Secretariat on Monday, after launching a Rs 1-crore accident insurance policy for the Singareni Collieries Company Ltd, Revanth Reddy said: “Congress-led UPA government has given Telangana state in 2014 with revenue surplus of Rs 16,000 crore and debt burden of Rs 72,000 crore. KCR, during his tenure as CM for 10 years, had made Telangana a revenue deficit state and increased debt burden to Rs 7 lakh crore.”

Revanth Reddy said: “In 2014, the state government used to pay Rs 6,000 crore per year towards repayment of loans. Now, we are forced to pay Rs 70,000 crore per year. The state government earns Rs 1.30 lakh crore in a year (revenue receipts) through various taxes… We are left with just Rs 60,000 crore revenue.”

He said that this was creating hurdles for the implementation of welfare schemes.

“We are paying salaries and pensions to staff and retired staff on the first of every month in all districts on a single day, while the previous BRS government used to pay them in phases till the 25th of every month. Due to this, there was delay in adjusting funds for Rythu Bandhu,” he said.

“If we adjust funds for Rythu Bandhu, then salaries will be delayed. If we adjust funds for salaries, then Rythu Bandhu and other schemes will be delayed. This is the present situation of the state government and this credit goes to KCR for pushing state government into debt trap with his financial indiscipline,” the Chief Minister said.

Citing examples of the Kaleshwaram Lift Irrigation Scheme and Mission Bhagiratha, Revanth Reddy said, “KCR spent over Rs 1 lakh crore on Kaleshwaram by taking loans, which now became useless with sinking of piers and barrages. He also spent Rs 50,000 crore on Mission Bhagiratha by taking loans. He told banks that the loan repayment will be done with the revenues generated from Kaleshwaram and Mission Bhagiratha, but there is no income to government from these projects due to which the state government is forced to pay from its resources.”

He said that despite the same, the Congress government was moving ahead in implementing its Six Guarantees.

“We are putting the state's finances back on track by curbing unnecessary and wasteful expenditure. We launched two guarantees within two days of coming to power. We are going to launch two more guarantees on February 27,” Revanth Reddy said.