With a significant portion of resources allocated to debt servicing, the government has limited space to implement new programmes.
Hyderabad: Chief Minister A. Revanth Reddy strongly defended the Congress government’s financial management, stating that out of the Rs 1.58 lakh crore loans taken in the last 15 months, Rs 1.53 lakh crore was utilised to clear the debts inherited from the BRS government. Speaking in the Legislative Assembly on Saturday, he asserted that the net debt incurred by the Congress government stands at only Rs 4,682 crore.
Reddy countered criticism from BRS leaders, who accused the Congress government of excessive borrowing in one year. He presented statistics detailing the state's financial liabilities upon assuming office on December 7, 2023.
According to him, Telangana's outstanding debt at that time was Rs 8,19,151 crore, comprising Rs 6,69,257 crore in loans, Rs 40,154 crore in pending bills, and additional liabilities amounting to Rs 1,09,740 crore, including obligations of discoms, Singareni Collieries and SC/ST sub-plan backlogs. Furthermore, he highlighted unpaid retirement benefits of employees worth Rs 8,000 crore.
The Chief Minister explained that from December 2023 to February 2025, the Congress government secured loans worth Rs 1,58,041 crore, of which Rs 88,591 crore went towards repaying principal amounts, while Rs 64,768 crore covered interest payments on debts incurred by the BRS government. This came to an overall repayment of Rs 1,53,359 crore, he said.
"These figures clearly indicate that the actual debt undertaken by our government is only Rs 4,682 crore, as the majority of borrowings were used to settle BRS-era loans," Reddy clarified.
Dismissing BRS leaders’ claims, he asserted that if their allegations and calculations were accurate, the state’s current debt should stand at Rs 8,27,290 crore. Instead, the actual debt is Rs 7,38,707 crore, which was largely due to the Congress government's proactive debt management acumen, Reddy said.
The Chief Minister added, "We have systematically repaid the BRS government's debts while ensuring financial stability for Telangana."
