Congress MP and former TPCC president N. Uttam Kumar Reddy has accused Chief Minister K. Chandrasekhar Rao of transforming Telangana into a bankrupt State while increasing the per capita debt by almost five times.
Addressing a press conference in New Delhi on Monday, Mr. Uttam Kumar Reddy said that Union Finance Minister Nirmala Sitharaman, in a written reply to a question raised in the Lok Sabha on Monday, revealed that some States had by-passed the Net Borrowing Ceiling (NBC) by borrowings loans from certain State Public Sector companies, Special Purpose vehicles (SPVs) and other equivalent instruments, where the principal and/or interest are to be serviced out of the State budgets.
“Telangana State had inherited debts of ₹69,000 crore at the time of its formation in 2014. Those borrowings or outstanding liabilities were accumulated in 60 years. However, the State Government has increased those debts to ₹ 3,12,191 crore in just 7-8 years. As per the RBI report, the total outstanding liabilities of Telangana increased to ₹72,658.10 crore in 2015, ₹90,523.4 cr in 2016; ₹81,820.9 cr in 2017; ₹160,296.3 cr in 2018; ₹190,202.7 cr in 2019; ₹225,418.0 cr in 2020; ₹ 267,530.7 cr in 2021 and to ₹312,191.3 cr in 2022,” he said.
