Revanth Fumes at BRS for Rs 40K-cr Unpaid Bills

Hyderabad: Chief Minister A. Revanth Reddy on Wednesday reviewed the state government's financial position in light of the bills to the tune of over Rs 40,000 crore kept pending by the BRS government. This staggering amount has adversely impacted the state administration.

Towards addressing the financial challenges and to work out solutions, Reddy held a meeting with Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka. Official sources indicated that the government has decided to clear a portion of arrears pertaining to fee reimbursement, scholarships and rents to private buildings used by the government. As an immediate measure, funds were released to partly clear the rent arrears for residential schools.

It was also decided that the state would prioritise clearing pending bills under Rs 10 lakh first. Managements of private degree and postgraduate colleges have been on strike since Tuesday, demanding payment of fee reimbursement arrears, which amount to nearly Rs 8,000 crore that have accumulated since 2021.

Among the major contributors to the embarrassing situation and the overburden is that owners of buildings, which have been rented for government residential schools, have locked the gates over non-payment of rents for months together. Incidentally, this has provided ammunition for BRS and BJP to criticise the ruling Congress.

Meanwhile, BC, SC, and ST organisations are also planning statewide protests, urging the government to clear the arrears and reopen colleges. Professional colleges offering engineering, pharmacy, MBA and other courses are expected to join the strike next week if their demands are not met by then.

The Rs 40,000 crore worth pending bills include unpaid Arogyasri health scheme bills, scholarships, and mess charges for BC, SC and ST students. Although Reddy and Bhatti have prioritised clearing bills that are under Rs 10 lakh, many bills which are less than Rs 2 lakh are stuck in the finance department for over a year now.

Retirement benefits for government employees have also been delayed as are arrears to several other sectors, including discoms, TGSRTC and local governing bodies. As a result, several groups are planning protests to pressurise the government into releasing the funds.

The financial strain is compounded by less-than-expected revenue collections in the first half of the present fiscal year (April-Sept. 2024-25), with a 20 per cent deficit compared to budget estimates. The state’s financial resources were further stretched after the government allocated Rs 18,000 crore for crop loan waiver in July and August, diverting funds and taking heavy loans through bond auctions.

Debt servicing is also imposing a huge financial burden on the state government, which had inherited Rs seven lakh crore debt burden (budget and off budget borrowings) from the BRS regime on which it is paying nearly Rs 207 crore towards repayment and interest every day.