Telangana’s Debt Soars to Rs 6,71,757 Crore, Deputy CM Bhatti Vikramarka Releases White Paper on Financial Crisis
Hyderabad, December 20, 2023: Revealing a concerning financial scenario, Deputy Chief Minister Bhatti Vikramarka announced in the Assembly that Telangana’s debt has surged to a staggering Rs 6,71,757 crores. The Deputy CM presented a white paper prepared by the government outlining the state’s current economic condition.
Highlighting the financial trajectory since the formation of the state in 2014, Vikramarka lamented that the debt, which stood at Rs 72,658 crores at that time, has escalated dramatically during the nine and a half years of the previous government’s rule. He criticized the former administration, attributing the present economic challenges to their policies.
In 2014, the state boasted a treasury with enough funds for a hundred days of expenses. However, Vikramarka pointed out that the current situation is dire, with the state now relying on the Reserve Bank of India for daily expenses. He blamed the economic policies of the previous government for this decline.
The Deputy CM further revealed a 20 percent disparity between the budget and actual expenditure during the previous government’s tenure. Allegations were made regarding a substantial increase in non-budgetary expenditure, with insufficient funds allocated to crucial sectors like education and healthcare. Vikramarka emphasized that the state failed to create assets in proportion to the funds spent.
Addressing the burgeoning financial challenges, Vikramarka highlighted that the burden of interest on loans has surged to 34 percent of the government’s income. Additionally, 35 percent of the budget must be allocated to employee salaries and pensions. Non-budgetary loans were identified as a primary factor leading to the state’s current debt crisis.
The Deputy CM concluded by underscoring the stark contrast between Telangana’s surplus budget in 2014 and its current indebted state, emphasizing the urgent need for financial rectification.
