Hyderabad: Telangana State will continue to face increasing debt. The current government plans to borrow Rs 57,000 crore through open market loans to meet its financial needs. Most of this money will be used to pay off monthly interest and outstanding loans from the previous government.
The government expects to get Rs 21,600 crore from central government loans, Rs 11,000 crore from autonomous bodies, and Rs 20,000 crore through special securities. State Finance Minister Mallu Bhatti Vikramarka mentioned that the borrowed funds are mainly to repay the debts left by the last government. The state needs at least Rs 4,500 crore every month to pay interests and loan installments.
Minister Vikramarka explained, “When the state was formed, the debts were Rs 75,577 crore. Over the past 10 years, this has surged to a massive Rs 6,71,751 crore. We have inherited a poorly managed state economy.”
He added, “The state was run like a private estate. A prosperous state at the time of bifurcation has been reduced to a struggling one due to the huge loan burden. Debts have increased significantly, and unpaid bills continue to pile up, putting the state’s economy in a risky position.”
