Notwithstanding criticism from the Congress on allegations of turning Telangana cash-strapped, Chief Minister K Chandrasekhar Rao on Saturday said his government is ready to avail a loan of Rs 20,000 crore to complete the projects in the state. He added that all government borrowings are well within the limits of the Fiscal Responsibility and Budget Management (FRBM) guidelines and has never defaulted on payments.
The government and the opposition were engaged in a war of words on Saturday in the assembly over public debt and other issues. Congress leader Bhatti Vikramarka accused the TRS party of turning a surplus state (in 2014) into a bankrupt state in 2019.
“I have no hesitation in saying that the state, which came into existence as a surplus state, has been turned into a bankrupt government in about six years. The budget has been presented accordingly,” Vikramarka said. He also added that while until last year there was a 20 per cent increment in the Budget, this year, there is a record 20% cut in budget allocations.
KCR, on September 9, had presented the annual budget of Rs 1,46,492.30 crore of which he stated that Rs 1,11,055.85 crore was allotted for revenue expenditure while Rs 17,274 crore was allotted for capital expenditure. This was 19.5% less than the vote-on-account Budget he presented ahead of polls.
“We will raise Rs 20,000 crore loans this year. We are raising the loans within the limits of the FRBM Act. The state never defaulted in paying loans, not even by an hour. You are saying that the state is not creating assets. Don’t you think Kaleshwaram, Sita Rama (lift irrigation project) and rejuvenation of SRSP (Sriram Sagar Project) are assets?” KCR asked Bhatti.
Responding to Congress’ allegations, KCR further said that when the state of Telangana was formed in 2014, there was no state. So the question of a surplus budget is out of the question. He also said that Bhatti is misleading the House with false allegations and that the Centre has cut the Central taxes and budget to the state due to which the budget allocations this year had to be slashed.