Ten states in the country are in debt trap and are worsening day by day. Luckily the Telangana state does not figure in the list contrary to the claims being made by opposition parties.
The states in debt trap include Uttar Pradesh, Madhya Pradesh, Haryana, Bihar, Andhra Pradesh, Punjab, Rajasthan, Kerala, West Bengal and Jharkhand.
They have borrowed more money than their GSDP to offer freebies to people.
This report was released by the Reserve Bank of India. These debt-trapped states failed to collect taxes enough for implementing the welfare programmes and they will have to face dire consequences, the report of the Comptroller and Auditor General warned.
Even Gujarat and Chhattisgarh are spending more than 10 percent of their revenue receipts.
The situation of Andhra Pradesh and Punjab are very pathetic, the reports pointed out.
This latest observation has come like a slap on the faces of opposition leaders in Telangana who day in and day out accuse the TRS government of mishandling the economy and borrowing huge sums throwing the state into debt trap.
By Gollapudi Srinivasa Rao