Telangana is a ‘rich state’. This is the famous statement of TRS chief and Telangana Chief Minister K Chandrashekar Rao since Telangana State was formed and he became first CM in June 2014.
But after seven years, Telangana is now reeling under severe debt trap.
After seven years, the condition of ‘revenue surplus’ Telangana state has now worsened to such an extent that nothing moves forward unless the state government raises loans from financial institutions.
Even loans are not enough, the TRS government has recently put up government lands and assets for sale in Hyderabad and all other districts to raise funds for welfare schemes and development programmes.
On Tuesday, Telangana government raised Rs 3,000 crore loans through auction by bonds by RBI.
With this, the total borrowings of Telangana government increased to Rs 11,500 crore in the first three months of this fiscal alone (April-June 2021-22).
The RBI has permitted to raise Rs 8,000 crore loans but TS government has raised loans over and above the permitted level to meet its financial obligations.
Opposition parties are accusing KCR of pushing a rich state into a debt trap due to his mindless welfare schemes with an eye on vote bank politics and financial mismanagement like demolition of existing buildings to construct Pragathi Bhavan, new Secretariat etc by spending hundreds of crores of rupees.
His recent decision to hand over Kia Carnival SUVs to additional collectors of 33 districts by spending over Rs 12 crore in these difficult Covid times is coming under severe criticism from all quarters.
