Telangana Budget 2024-25: Telangana Govt borrowed Rs 35,118 Cr, repaid loans of Rs 42,892 Cr, says Bhatti

HYDERABAD: Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu criticised the previous BRS government for its failures over the past decade.

"Ten years into its formation, Telangana hasn’t progressed as expected. The previous rulers who promised to transform Telangana into 'Bangaru Telangana' failed miserably on all fronts," he said while presenting the full budget for Telangana for the financial year 2024-25 in the Legislative Assembly on Thursday.

"Development aside, the welfare of the people suffered, and the state became mired in debt," he alleged.

According to Bhatti, the state's debt, which was Rs 75,577 crores at the time of its formation, increased to Rs 6,71,751 crores over ten years. However, he claimed that there was no corresponding development.

"We started our administration by controlling frivolous expenditures and with a sense of financial discipline. We made an attempt to streamline the system and pay the salaries and pensions in a timely manner to 3.69 lakh government employees and 2.87 lakh pensioners from March 2024. This was the first baby step towards better administration," he said.

Bhatti informed that since the formation of the Congress government, it has raised loans of Rs 35,118 crores and repaid loans amounting to Rs 42,892 crores. "In effect, we have repaid a higher amount of Rs 7,774 crores than the loans we have raised, demonstrating our sincerity to the people. The previous government reduced the state to such a sad state that loans had to be raised to repay other loans," he said.

The Deputy CM noted that the global economy recorded a growth rate of 3.2% during the year 2023-24. The Indian economy recorded a growth rate of 7.6%, while Telangana's growth rate was 7.4% during the same period. He highlighted that Telangana’s growth rate was slightly lower than the national average.

At current prices, Telangana’s Gross State Domestic Product (GSDP) in 2023-24 was Rs. 14,63,963 crores, an increase of 11.9% compared to the previous year. At the national level, this growth rate was 9.1%.

"The substantial rise in debt relative to income growth suggests a heavy dependence on borrowing to fund expenditures, potentially endangering fiscal sustainability. The persistent rise in debt far outstripping income gains suggests that without stringent fiscal reforms, Telangana’s economic health could be at risk, necessitating measures to balance expenditure with revenue generation and reduce dependence on borrowing," he said.

The per capita income of Telangana in 2023-24 was Rs. 3,47,229, whereas the country's per capita income was Rs. 1,83,236. Telangana’s per capita income is higher by Rs. 1,64,063 than the national per capita income. However, there is significant inequality among various districts. For example, the per capita income of Ranga Reddy District is Rs. 9,46,862, whereas that of Vikarabad is Rs. 1,80,241. This indicates that the economic development among districts is grossly unequal. Our government will take measures to bridge the gap among districts.

In 2023-24, the Services Sector contributed 65.7%, the Industrial Sector 18.5%, and the Agriculture and Allied Sectors 15.8% to Telangana’s Gross State Value Added (GSVA). At current prices, the Gross State Value Added (GSVA) of Agriculture and Allied Sectors increased by 4% in 2023-24 compared to 2022-23. Since the sector employs 47.3% of the state’s population, its economic success is critical to improving living standards in Telangana. Additionally, 33% of the state’s population depends on the Services Sector and 19.7% on the Industrial Sector.

He said the Labour Force participation rate in Telangana is higher than the national average.