TRS pushing State into debt-trap: TPCC

TRS pushing State into debt-trap: TPCC
Highlights

Congress on Tuesday accused the TRS government of pushing the entire Telangana State into a debt trap with mismanagement of its finances. The Congress felt that the government could double the per capita debt by the time its completed its full term. Congress president N Uttam Kumar Reddy stated that Telangana State had inherited debts of Rs 61,710 crore at the time of its formation on June 2, 2014

Hyderabad: Congress on Tuesday accused the TRS government of pushing the entire Telangana State into a debt trap with mismanagement of its finances. The Congress felt that the government could double the per capita debt by the time its completed its full term. Congress president N Uttam Kumar Reddy stated that Telangana State had inherited debts of Rs 61,710 crore at the time of its formation on June 2, 2014.

With a population of 3.5 crore (as per 2011 Census), the per capita debt was Rs 17,626.72. The TRS government had accumulated huge debts in a period of just 21 months. It increased the debts to Rs 83,845 crore in 2014-15 and they got accumulated to Rs 100,707 crore in 2015-16.

"Finance Minister Eatala Rajender, in his budget speech for 2016-17, has proposed to borrow another Rs 23,113 crore. This will increase the per capita debt in Telangana State to Rs 35,373.72 crore while taking the total borrowings to Rs 123,821.49 crore," he said.

The TPCC chief held that the TRS government had increased the debt on each citizen every passing day. Besides the debts which the State had inherited due to bifurcation of Andhra Pradesh, by the end of 2016-17, TRS government would be borrowing additional loans of more than Rs. 62,111 crore since June 2, 2014.

At an average, Rs 60 crore would have been borrowed each day to run the government for a total of 1,043 days (till March 31, 2017). The present average of borrowing during the last 653 days is Rs 59 crore, he said.

Uttam Kumar Reddy said the State government had always kept the people, including the opposition parties, in dark about the real financial situation. “We demand White Paper on State's Finances or at least an all-party meeting on the issue.

But the government refused to do so. It is strange that more than the Finance Minister, Chief Minister K Chandrashekar Rao himself got involved in managing State's finances,” he said.

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