Hyderabad: The state government has blamed the previous BRS government for delays in implementing the six guarantees promised by the Congress before the elections.
During a discussion on Rythu Bharosa in the Assembly on Saturday, Chief Minister A. Revanth Reddy explained that the state’s fragile financial condition and the massive debt inherited from the previous government were the main reasons for the delay. He said the current administration had to focus on clearing old dues and stabilizing the economy, which allowed them to implement only a few of their promises so far.
The Chief Minister criticized the previous government for heavy borrowing at high-interest rates and alleged financial mismanagement. He remarked that in some countries, such actions would have led to severe consequences, even going as far as saying, “they would have been hanged for what they had done.”
Revanth Reddy revealed that when his government came to power, the state was burdened with a debt of Rs 7.22 lakh crore. To manage this, his government had to borrow additional funds just to repay the loans. He emphasized that unlike the previous regime, they did not use money for personal luxuries like constructing farmhouses in Gajwel, Janwada, or Moinabad, but instead focused on clearing the financial mess left behind.
The Chief Minister dismissed opposition claims of borrowing Rs 1.27 lakh crore, clarifying that the previous administration borrowed loans at an unprecedented 11.5% interest rate. He noted that international agencies like JICA and banks could have provided loans at much lower rates, between 2% and 4%. This financial mismanagement, he said, had created significant challenges for the current government.
To address the crisis, Revanth Reddy shared that he has been traveling to Delhi frequently to consult financial experts. He is seeking strategies to reduce the interest burden on loans to a more manageable rate of 7% to 8%.
