Telangana’s outstanding debt rose from ₹90,161 crore to ₹8.21 lakh crore in BRS’s 10-year tenure: Bhatti Vikramarka

Taking strong objections to the Bharat Rashtra Samithi’s (BRS) criticism of Telangana’s financial situation, Deputy Chief Minister Mallu Bhatti Vikramarka has alleged that the close to 10-year rule of the BRS pushed the State into debt trap.

He said that while the government has initiated measures to remedy the situation and put the economy back on track, it is surprising that BRS working president K.T. Rama Rao and deputy floor leader T. Harish Rao are spreading falsehoods against the government. Mr. Bhatti Vikramarka has put out the amount of ‘indiscriminate’ debts raised by the BRS government since it took over reins in June 2014 and said the previous government had destroyed the economy of Telangana which was carved out as a revenue surplus State.

The magnitude of the debt burden could be seen from the fact that the Congress, since it formed the government, borrowed ₹1.78 lakh crore and spent another ₹30,000 crore from revenue receipts to repay the interest and principal of the loans since it came to power. “We have to borrow for repaying the debt. The State could have achieved significant development had this burden not been there,” he said, wondering how the BRS leaders were indulging in false propaganda against the government which was facing hardships because of the past government’s deeds.

Listing out the debts raised by the BRS government, he said the previous government took the outstanding debt of the State from ₹90,161 crore to ₹8.21 lakh crore in its close to 10-year tenure. The outstanding amount on account of loans under FRBM limits and guarantees given by the government was to the tune of ₹5.16 lakh crore, while the government guarantees, pending bills pertaining to employees, capital works, schemes, energy dues, dues to Singareni and other amounted to another ₹3 lakh crore. “The BRS leaders owe an answer to the loans they had raised,” he said.

Criticising the BRS leaders for their attempts to project the State’s fiscal situation as a publicity tool, he said people taught a fitting lesson to the BRS in the previous elections, and they should realise the people’s anger. “The stature of anyone is decided by the service they render in public life. People have already shown them (the BRS leaders) their position,” he said.

Alleging that the Opposition was trying to spread false propaganda through social media, he said the Government was focused on welfare and development of the State and observed restraint thus far. “These leaders are lacking basic understanding as can be seen from their claims,” he said adding the financial management of the BRS government based on hoodwinking the people could not sustain for long. He ridiculed the claims of Mr. Harish Rao that the BRS government raised debt of around ₹3 lakh crore and wanted to know why the government was forced to repay huge amounts to institutions like the RBI.

“The BRS government raised borrowings with high interest rates of 10% to 10.5%, burdening the exchequer,” he said. The Congress government restructured the debts and brought down the quantum of interest repayment till 2031-32 from ₹34,058 crore to ₹11,915 crore.