The Comptroller and Auditor General of India (CAG) reported that for the financial year 2022-23, Telangana state is seeing a rise in liabilities and facing unsustainability of debt repayments.
Mallu Bhatti Vikramarka stated that the total liabilities of the state will be Rs 4.68 lakh crore by 2022-23, which includes Rs 3.49 lakh crore of accounted liabilities and Rs 1.18 lakh crore of off-budget borrowings.
According to the CAG report, Telangana should repay Rs 2.67 lakh crore as principal and interest on the loans taken from various financial institutions such as Ujwal Discom Assurance Yojana Bonds, LIC, National Insurance, National Small Savings Fund, and National Cooperative Development Corporation. The CAG has raised concerns over the sustainability of state debt. In the year 2022-23, the Government has facilitated Rs 17,829 crore, of which Rs 8,696 crore was towards principal, Rs 3,531 crore towards interest, and Rs 5,602 crore’s detail was not mentioned as to whether it was principal or interest amount.
Also Read : Telangana Budget: Key Points
The limit of OBB is 29 percent of the Gross State Domestic Product (GSDP) as prescribed by the 15th Finance Commission. But the ratio is 35.6 percent, which is 6.6 percent more than the suggested limit.
According to the CAG report, Telangana is at the edge of financial stress.
-Sanyogita