Congress Government Releases White Paper On Finances Of Telangana

The Telangana government on Wednesday released a white paper on the status of the State's finances, and said that the debts of Telangana were Rs 6,71,757 crore.

Addressing the Assembly after the announcement of a short discussion on "Telangana State Finances - White Paper", Deputy Chief Minister and Finance Minister Bhatti Vikramarka said that at the time of the formation of Telangana State, the debt was Rs 72,658 crore and that it had increased at the rate of 24.5% per annum in ten years.

He claimed that 34% of the revenue was going in loan repayments, and 35% for the employees' salaries and pensions. He said that the State, which was revenue-surplus in 2014 and had one of the fastest growing economies in the country, had gone bankrupt in ten years and was staring at a debt crisis, and that the State government now had to get loans just for daily expenses.

"It is our responsibility to tell people about the economic anarchy unleashed by the previous BRS government," Vikramarka said.

He also said that the State had not been able to spend enough money on critical sectors such as education and health, in which the budgeted amounts as a proportion of the total expenditure were amongst the lowest in the country.

"The rate of accumulation of the debt from off-budget borrowings has led to this situation. Every effort will be made to increase the State's resources and direct expenditures toward uplifting the impoverished, while reducing unnecessary spending," he said.

However, he reiterated that the government would implement all the six guarantees promised by the Congress during the elections, and that it would overcome the fiscal challenges in a responsible, prudent and transparent manner.