Tue Dec 03 07:55:38 UTC 2024: ## Telangana’s Mounting Debt Burden Hampers Welfare Schemes
**Hyderabad, December 3, 2024** – Telangana’s burgeoning debt, which has ballooned from ₹72,658 crore at the state’s formation to ₹6.71 lakh crore in the past decade, is severely impacting the Congress government’s ability to fund its welfare programs, according to a recent White Paper on State Finances.
The state has already spent ₹15,162 crore on debt servicing in the first seven months of the current fiscal year (2024-25), exceeding projections even before the year is halfway complete. This figure is approaching the ₹17,729 crore budgeted for the entire year. The government’s reliance on daily financial accommodation from the Reserve Bank of India highlights the critical fiscal stress. September saw daily dependence on ways and means advances and special drawing facilities, along with an overdraft for 17 days—a stark contrast to 2014 when the state consistently held positive balances.
This financial strain is hindering the government’s ability to fulfill its election promises, including free bus travel for women, enhanced health coverage, free electricity, and a rice bonus. The state’s revenue receipts are falling short of expenditure, further exacerbated by restrictions on borrowing limits imposed by the Union Finance Ministry. This shortfall has led to underfunding in crucial sectors such as education and health.
To address the crisis, the government is exploring options such as revising land prices, selling underutilized land, and increasing liquor prices to boost revenue. The situation underscores the significant challenge facing the Telangana government in balancing its ambitious welfare agenda with its mounting debt obligations.
First Piper 