Revanth Reddy blames KCR for Telangana's Financial Crisis

February 27, 2024 14:09
Revanth Reddy blames KCR for Telangana's Financial Crisis

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Revanth Reddy blames KCR for Telangana's Financial Crisis:- Addressing a press conference, Chief Minister A. Revanth Reddy expressed concern over the dire financial situation faced by Telangana due to the massive debts inherited from the previous government. He criticized the previous administration for burdening the current government with the responsibility of paying back Rs 70,000 crore in loans annually, out of a total revenue of Rs 1.3 lakh crore. Revanth Reddy emphasized that the Congress-led UPA government had left Telangana with a debt of Rs 72,000 crore in 2014, despite a revenue surplus of Rs 16,000 crore. He also blamed the former CM, KCR, for transforming Telangana from a revenue surplus state to a revenue deficit state, with a debt burden of Rs 7 lakh crore during his ten-year tenure. The Chief Minister highlighted that while the state government used to pay Rs 6,000 crore per year towards loan repayment in 2014, it is now compelled to pay Rs 70,000 crore per year. This has significantly affected the state's revenue, leaving only Rs 60,000 crore for the implementation of welfare schemes.

The state government now disburses pensions to its staff and retired staff simultaneously on the first day of each month, a change from the previous administration's practice of staggered payments until the 25th. This alteration has caused a delay in allocating funds for Rythu Bandhu," the Chief Minister explained. "We find ourselves in a predicament where adjusting funds for Rythu Bandhu would result in delayed salaries, while adjusting funds for salaries would cause delays in Rythu Bandhu and other programs. This unfortunate situation is solely due to KCR's reckless financial management, which has driven the state government into a debt trap," he emphasized.

Revanth Reddy illustrated this point by highlighting the exorbitant expenditure incurred by KCR on the Kaleshwaram Lift Irrigation Scheme and Mission Bhagiratha, both funded by loans. "KCR has borrowed over Rs 1 lakh crore for Kaleshwaram, only to see it rendered useless with the sinking of piers and barrages. Additionally, he has borrowed Rs 50,000 crore for Mission Bhagiratha. Although he promised the banks that the revenue generated from these projects would cover the loan repayment, the state government has not received any income from them, forcing it to use its own resources for payment," he revealed. The Congress government was making progress in enacting its Six Guarantees. "By reducing unnecessary and wasteful spending, we are restoring the state's financial stability. Within two days of taking office, we introduced two guarantees. On February 27, we will unveil two additional guarantees," stated Revanth Reddy.

(Video Source: Telangana CMO)

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Revanth Reddy  KCR  Telangana