Telangana’s Fiscal Position in Doldrums, Bankers Viewing State Reps as “Thieves”: CM Reddy
Chief Minister A Revanth Reddy expressed concerns about Telangana's deteriorating financial situation on Monday, stating that the state is unable to secure fresh loans due to a lack of trust from bankers.
Hyderabad: Chief Minister A Revanth Reddy expressed concerns about Telangana’s deteriorating financial situation on Monday, stating that the state is unable to secure fresh loans due to a lack of trust from bankers.
Table of Contents
Bankers View State Representatives as “Thieves”
Speaking at a police awards function in Hyderabad, CM Reddy said, “Bankers are looking at Telangana representatives as thieves. Nobody is coming forward to offer loans. Our financial position is in doldrums.”
He added that even in Delhi, state representatives are struggling to get appointments, highlighting the urgent need for financial discipline.
Government Employees Press for Long-Pending Demands
The Chief Minister was addressing reports that a section of government employees is urging the state to meet their long-standing demands, such as the reintroduction of the Old Pension Scheme and medical bill reimbursements.
The Telangana Employees’ Joint Action Committee (JAC) recently submitted a memorandum with 37 demands to the state government.
Rising Debt Servicing Burden
CM Reddy revealed that over the past 16 months, the state government has paid ₹9,000–₹10,000 crore on average towards debt servicing for loans raised by the previous BRS government at high interest rates.
“We do not have a single rupee to lay roads. Telangana’s fiscal position is like a family that has gone bankrupt,” he stated.
Revenue Shortfall
The Chief Minister shared that the state requires a monthly revenue of ₹22,500 crore to meet its financial needs, whereas the current income stands at ₹18,500 crore.
He appealed to state employees and organisations like TGRTC not to publicly air grievances, as it could damage the state’s credibility further.
Investments Amid Challenges
Despite the financial difficulties, CM Reddy highlighted the state’s achievement in attracting ₹2.28 lakh crore in investments since the Congress assumed power in December 2023.
He emphasized the importance of maintaining a strong law and order situation to continue drawing investments to the state.
