Revanth Reddy, who earlier criticized the BRS Government on debts, has accrued a debt of Rs. 32,000 crore in seven months. The latest move by the Congress government is to secure an additional Rs. 2,000 crore loan.
The state’s finance department has initiated the process to raise this debt, issuing bonds worth Rs. 1,000 crore for 12 years and another Rs. 1,000 crore for 16 years to the Reserve Bank of India. These bonds are scheduled for auction on the 16th of this month, after which the funds will be transferred to the state treasury.
To date, the Congress government has accumulated a total debt of Rs. 30,000 crore. With the new loan, this figure will rise to Rs. 32,000 crore. Just 20 days ago, the state took a Rs. 2,000 crore loan from banks. In the 223 days since the Congress took office, it has averaged Rs. 144 crore in loans per day.
This escalating debt is drawing criticism. Financial experts and politicians are voicing concerns that Chief Minister Revanth Reddy is not focusing on creating sustainable assets within the state. Critics point out the absence of substantial projects or schemes that could significantly improve the lives of citizens despite the increasing debt.
The Congress government came to power by making a slew of promises, which are now contributing to the growing debt burden on Telangana. Major loans are being taken to fund schemes like loan waivers, Rythu Bharosa, and Rythu Bima. The government has pledged to waive crop loans up to Rs. 2 lakh by August 15, a move estimated to require Rs. 31,000 crore.
With the Vanakalam crop season underway, the government needs approximately Rs. 5,000 crore immediately for the Rythu Bharosa scheme. Additionally, Rs. 1,500 crore is required by August 15 to pay premiums for Rythu Bima to the LIC.
The state government is securing funds from the Reserve Bank by selling bonds worth Rs. 5,000 to 6,000 crore monthly. Media reports suggest the potential to raise Rs. 15,000 to 18,000 crore through bond sales in July and August. Furthermore, the government is exploring loans exceeding Rs. 10,000 crore through the Telangana State Industrial Infrastructure Development Corporation (TGIIC) by mortgaging government lands.
There are also discussions about raising funds by selling bonds, mortgaging land, and establishing a farmer’s welfare corporation. The key concern remains whether the borrowed funds will be utilized for infrastructure and asset creation or diverted to other schemes.