A day after indulging in war of words over debts raised by the previous Bharat Rashtra Samithi (BRS) government and the alleged corruption in the present government, Telangana Excise Minister Jupally Krishna Rao reiterated his readiness for a public debate with BRS working president KT Rama Rao or former Chief Minister K. Chandrashekar Rao on the State’s finances, corporation borrowings, Special Purpose Vehicle (SPV) funding, pending liabilities and interest burden.
At a press conference held in Hyderabad on Friday (July 3, 2026), Mr. Krishna Rao remained committed to resigning if the amount of BRS debts cited by him were proven incorrect.
“I am ready to resign and the BRS leadership should reveal what would they do if this amount was right. Let’s discuss and debate at Press Club Hyderabad at 5 pm if you are ready,” he said.
He showed the videos of Mr. Rama Rao and senior leader T. Harish Rao claiming different figures on the loans raised during the BRS regime.
Mr. Krishna Rao also released an open letter to Mr. Rama Rao, accusing the previous government of leaving the State under an unprecedented debt burden and challenging the Opposition leader to a public debate backed by official financial records.
In the letter, Mr. Krishna Rao said that Telangana’s total outstanding liabilities, including pending bills, increased from ₹90,161 crore at the time of State formation in June 2014 to ₹8,21,651 crore by December 1, 2023, when the BRS left office.
According to the minister, the State’s FRBM borrowings rose from ₹72,658 crore to ₹3,89,673 crore, while loans raised through SPVs, government-backed corporations and other entities increased from ₹17,502 crore to ₹2,82,084 crore.
He also alleged that the previous government left unpaid dues of ₹40,154 crore towards employee salaries, contractors’ bills and welfare schemes, besides another ₹1,09,740 crore owed to power distribution companies, Singareni, SC/ST Sub-Plan commitments and other liabilities.
The Minister listed borrowings raised through various government corporations, including ₹88,651 crore for the Kaleshwaram project and other irrigation corporations, ₹20,200 crore through the Telangana Drinking Water Supply Corporation, ₹85,493 crore by power utilities, ₹56,146 crore by the Civil Supplies Corporation, ₹6,470 crore by the Housing Corporation, ₹4,221 crore by the Road Development Corporation, ₹4,906 crore by GHMC and ₹2,352 crore by the Hyderabad Metropolitan Water Supply and Sewerage Board.
The minister further alleged that when financial institutions were unwilling to extend fresh loans, the previous government leased the Outer Ring Road for ₹7,232 crore and used the proceeds to finance the Rythu Bandhu scheme.
Defending the Congress government, Mr. Krishna Rao said that between December 2023 and June 2026, the State had borrowed ₹1,77,058 crore, while repaying ₹2,08,681 crore towards the principal and interest on loans contracted by the previous government.
Raising a series of questions to the BRS leadership, the minister asked why such large borrowings had become necessary, what permanent revenue-generating assets had been created with the loans, and why dues to employees, contractors, discoms, Singareni and SC/ST welfare programmes had been left unpaid.
He also questioned why borrowings for the Kaleshwaram and Mission Bhagiratha projects, raised through government-backed corporations, were kept outside FRBM debt calculations.
Published – July 03, 2026 12:31 pm IST
