Hyderabad: A Heated Debate on Government Loans
The topic of loans taken by the government has sparked a war of words between Deputy Chief Minister Mallu Bhatti Vikramarka and BRS leader T Harish Rao. The debate centered around the figures related to FRBM (Fiscal Responsibility and Budget Management) and non-FRBM loans, with both leaders presenting conflicting data during a discussion in the Assembly.
Harish Rao alleged that the Congress government borrowed Rs 1.27 lakh crore in the last year alone. He claimed that a significant portion of the state budget—Rs 40,000 crore—was being spent solely on repaying interest for loans taken by the previous BRS government. This topic was brought up during the question hour when members sought clarifications about guarantees given to government and non-government sectors from December 2023 onward.
The Finance Minister provided further details, stating that as of November 30, 2024, the government had guaranteed and drawn loans amounting to Rs 51,277.71 crore. He also revealed that FRBM loans borrowed between December 2023 and November 2024 totaled Rs 52,118 crore, while non-FRBM loans taken by corporations and special purpose vehicles (SPVs) during the same period amounted to Rs 61,991.14 crore. Of this, public sector undertakings without guarantees borrowed Rs 10,099.70 crore.
Harish Rao claimed that according to RBI data, the government borrowed Rs 1.27 lakh crore in 2023-24, which could amount to over Rs 6.36 lakh crore in five years. He argued that the BRS government had taken Rs 4.17 lakh crore in loans over its tenure, including additional borrowing allowed during the Covid period, and dismissed Congress’s claim of Rs 7 lakh crore as exaggerated.
In response, Bhatti Vikramarka accused Harish Rao of misleading the House. He argued that the government was working within FRBM limits and criticized the financial mismanagement of the previous BRS government. According to Vikramarka, the current administration inherited a challenging situation, spending Rs 66,000 crore on interest payments for earlier loans and Rs 40,000 crore on free power for DISCOMs. Additionally, Rs 18,000 crore was being paid to clear dues for the Civil Supplies Corporation.
Vikramarka also criticized BRS members for disrupting the Assembly with placards and accused them of bringing a privilege motion against him for suggesting that tenant farmers should receive Rs 12,000 per year. He objected to the BRS abruptly walking out of the Business Advisory Committee (BAC) meeting.
Harish Rao countered Vikramarka’s claims by accusing him of misleading the House. He clarified that the privilege motion was not about tenant farmers but about the alleged Rs 7 lakh crore loan figure cited by Congress. Harish Rao challenged the government to hold a detailed discussion on the state’s financial issues, further escalating the tensions between the two sides.
