Hyderabad: Chief Minister K. Chandrasekhar Rao on Wednesday said the debt burden of Telangana State had doubled since its formation in June 2014, but was well within the permissible limits.
The government gave bank guarantee to various corporations to raise loans which was a regular administrative practice. “These corporations raise loans in emergency cases. Once the purpose is served, they will re-pay and close the account. Banks seek government guarantee to extend loans to corporations as per norms. These should not be viewed as government loans,” Mr Rao added.
The Congress promise of a one-time waiver of crop loan up to Rs 2 lakh if elected to power was impossible as it would have to stop all payments, including salaries for eight months, he said.
“The state’s average income per month fr-om all sources, including Centre's tax devolution is around Rs 10,500 crore. We have to spend up to Rs 6,000 crore towards establishment expenditure which include salaries. We need to service the debt for payment of interest and principal amount,” he said and asked why the Congress was trying to ‘cheat’ farmers.
The TRS Government spent Rs 1.25 lakh crore towards capital expenditure in four years, while governments in undivided AP failed to spend even Rs 60,000 crore in 65 years, he said.
