CM Revanth Reddy, who once criticized the BRS government over debts, now finds himself embroiled in a mounting financial crisis. Within just 389 days of taking office, the Revanth government has accumulated Rs. 1,38,117 crore in debt.
The Congress government has set unprecedented records in debt collection, which include:
Rs. 56,027 crore under FRBM loans
Rs. 61,991 crore in non-FRBM loans
Rs. 10,099 crore as non-guaranteed loans
Rs. 10,000 crore by mortgaging 400 acres of government land
In December alone, the government borrowed Rs. 3,909 crore, with Rs. 2,000 crore taken on December 3, Rs. 1,500 crore on December 17, and Rs. 409 crore through an RBI auction on December 31.
One alarming instance involved mortgaging 400 acres of land to the Telangana Industrial Infrastructure Corporation (TGIIC) to secure a Rs. 10,000 crore loan from ICICI Bank. This transaction bypassed FRBM limits, with repayment stretched over ten years. While the government claims these funds will support schemes like Rythu Bharosa, it has yet to clarify its broader fiscal strategy.
Critics argue the government is borrowing recklessly without outlining plans to boost revenue streams. The absence of major infrastructure projects or any new schemes further fuels concerns about fiscal irresponsibility.
The 2024-25 budget projects Rs. 62,012 crore in loans, Rs. 10,000 crore more than the 2023-24 budget. However, the actual borrowing already far exceeds these figures. The government continues to issue guarantees to corporations and autonomous bodies, adding Rs. 61,991 crore to its liabilities.
The Revanth government’s unchecked borrowing and lack of accountability have raised red flags among financial experts. With no significant development projects to justify the growing debt, experts fear the state is heading toward a financial crisis.
