Didn't sell an inch of Telangana land to mobilise resources: CM Revanth

Hyderabad: "I did not sell an inch of government land, a practice that governments have been following for decades, and yet arranged funds for welfare and development besides clearing debts," said Chief Minister A. Revanth Reddy.

Speaking to Deccan Chronicle, the Chief Minister had referred to repaying debt of Rs 65,000 crore and waiving farm loans of Rs 20,000 crore among various expenditures, and attributed the success to strict fiscal discipline and tightening loopholes in the revenue collection.

"Despite an overall economic slowdown, which had a severe impact on revenue mobilisation across the country, Telangana registered 17 per cent growth in GST collections," he pointed out.

Explaining the tightrope walk, Revanth Reddy said every month Rs 6,500 crore would be spent on salaries and establishment cost of the government while another Rs 6,500 crore was utilised for debt servicing. "I am left with Rs 5,000 crore with which I have to maintain a balance between welfare and development," he said.

Telangana's proportionate debt servicing at the time of bifurcation was Rs 6,500 crore per annum and reckless borrowing and unproductive spending pushed the servicing burden to Rs 6,500 per month, he lamented.

Meanwhile, according to a report on the state’s finances released on Monday, in the period from December 2023 to November 2024, the Congress government repaid more money than it borrowed, reflecting a commitment to fiscal responsibility. The repayment was part of a broader strategy that involved mobilising funds for key welfare programmes while ensuring the state's financial stability.

Despite facing significant financial challenges, the Congress government has made notable strides in both debt reduction and welfare scheme implementation, the report noted.

When the Congress government assumed power in December 2023, it inherited a staggering Rs 7 lakh crore debt from the previous BRS administration, accumulated over a decade. To address this challenge, the new government not only borrowed Rs 52,118 crore but also managed to repay Rs 64,516 crore, including principal and interest, significantly reducing the burden on the people.

The Congress government has prioritised maintaining strict control over finances to reverse the debt spiral. By adhering to budget limits and adopting an adjustment policy, it has been able to meet both planned and non-planned expenses without exacerbating the state's debt. This approach has allowed the government to stay on track with development goals while keeping a focus on fiscal health, according to the note.

Despite paying off significant debt, the Congress government has made unprecedented investments in welfare schemes. A total of Rs 61,194 crore has been allocated to welfare initiatives. These include the loan waiver scheme for farmers, which has written off Rs 20,617 crore of loans for 25.36 lakh families.

The government also spent nearly Rs 57,000 crore on other farmer-related initiatives, including crop insurance, compensation for crop losses, and free electricity for agriculture. The government has committed nearly Rs 9,888 crore to welfare schemes for BCs, minorities, SCs, and STs, ensuring that the most vulnerable sections of society benefit from its policies.

In addition to fiscal reforms, the Congress government has kept its promises to the people by implementing key guarantees. It released an annual job calendar, creating 54,520 government jobs, and the recruitment process has been completed. This is a significant step in providing much-needed employment to Telangana’s youth, who were neglected during the previous administration.

Expenditure on major schemes:

Rythu Bharosa: Rs 7,625 crore

Crop loan waiver: Rs 20,617 crore

Cheyutha pensions: Rs 11,382 crore

Rajiv Aarogyasri: Rs 890 crore

LPG subsidy: Rs 442 crore

Gruha Jyothi (Free power till 200 units): Rs 1,234 crore

Power subsidy: Rs 11,141 crore

Farmers’ insurance: Rs 1,514 crore

Rice subsidy: Rs 1,647 crore

Scholarships & diet charges for SW hostellers: Rs 1,016 crore

RTC tree travel for women: Rs 1,375 crore

Kalyana Lakshmi/Shaadi Mubarak: Rs 2,311 crore

Total: Rs 61,194 crore