Debt burden soars, but in limits: Telangana CM K Chandrasekhar Rao
Telangana had inherited debt of Rs 72,000 crore from undivided AP in 2014 which has gone up to Rs 1.42 lakh crore.
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.
Telangana had inherited debt of Rs 72,000 crore from undivided AP in 2014 which has gone up to Rs 1.42 lakh crore.
Interestingly, the CM gave no details about huge loans that were raised by setting up corporations and the state government standing bank guarantee to these corporations to raise loans. He said that there was no cause for worry as the burden was still lower when compared with other states.
“The broad fiscal policy lies with the Centre. States cannot borrow more than the limit prescribed as per FRBM Act. We get loans to an extent for which we are entitled to, leaving no scope for borrowing more. Some Opposition leaders are resorting to propaganda on loans and showcasing their ignorance,” he said.
