Mon Dec 02 16:41:04 UTC 2024: ## Telangana’s Debt Burden Hampers Development, Says CM Reddy

**Hyderabad, December 2, 2024** – The Telangana government is facing significant financial challenges due to a massive debt inherited from the previous administration, Chief Minister A. Revanth Reddy revealed today. While the current government has borrowed ₹52,118 crore since taking office, a staggering ₹64,516 crore has been allocated to repaying interest and principal on loans accumulated over the past decade (2014-2023).

The previous Bharat Rashtra Samithi (BRS) government accumulated a debt of approximately ₹7 lakh crore, creating a substantial repayment burden for the current Congress government. CM Reddy stated that this debt significantly restricts the allocation of funds towards new development projects and welfare schemes. Despite this, the government has managed to implement several key welfare programs, including the Rajiv Arogya Sri healthcare scheme, free travel for women on RTC buses, subsidized gas cylinders, and free electricity for households.

A significant portion of the state’s monthly revenue of ₹18,500 crore is earmarked for salaries (₹6,500 crore) and loan repayments (₹6,500 crore), leaving only ₹5,500 crore for welfare and development initiatives. The government claims to have spent ₹61,194 crore on implementing various promised schemes over the past year.

A major achievement highlighted by the CM was the ₹20,617 crore loan waiver for 25.36 lakh farmer families, described as an unprecedented measure. Further, ₹57,000 crore has been spent on farmer welfare and development, including insurance, crop loss compensation, and free electricity for agriculture. An additional ₹9,888 crore has been allocated to the welfare of backward classes, minorities, and scheduled castes and tribes. CM Reddy attributed the current financial constraints to the previous government’s “indiscriminate” borrowing.

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