Figures and statistics show that, contrary to allegations made by Bharatiya Janata Party leaders and Union Ministers, it is the Centre’s indifference that is pushing Telangana into debt.
According to data presented by the Centre in Parliament on Monday, the Union government’s timely assistance to the country’s youngest and fastest growing state could have saved the State government, its public sector enterprises, and corporations from incurring a debt of at least Rs 1.5 lakh crore as a result of borrowings totaling Rs 4.33 lakh crore.
Based on the Centre’s data, the Telangana government has a total debt of Rs 2,83,452 crore at the end of March 2022, compared to Rs 75,577 crore it had on June 2, 2014, at the time when the new State was formed. Of this, Rs 2,07,875 crore was freshly borrowed after State formation.
Another Rs 1.5 lakh crore was borrowed by the state’s public sector enterprises and corporations to implement the Kaleshwaram Lift Irrigation Scheme, Mission Bhagiratha, Strategic Road Development Programme, and other development initiatives. Telangana’s government, PSEs, and corporations received a total of Rs 19,430.93 crore from NABARD. Between 2014 and 2022, the total amount lent by various nationalised banks to corporations and PSEs is Rs 1,31,241 crore.
Approximately Rs 7,144 crore was given from the sanctioned amount of Rs 8,873 crore from NABARD under Rural Infrastructure Development Fund (RIDF) towards the development of infrastructure in rural areas.
Similarly, under Warehouse Infrastructure Fund (WIF) by NABARD to the State government, its corporations and PSEs, Rs 972.78 crore was sanctioned for 364 projects and the loan disbursed stood at Rs 852.27 crore. Under Infrastructure Development Assistance (NIDA), Rs 14,516.65 crore was sanctioned and Rs 11,424.66 crore was distributed to different State-owned corporations including Telangana Drinking Water Supply Corporation, Telangana State Horticulture Development Corporation, and Kaleswharam Irrigation Project Corporation.
According to officials, nearly Rs 1.5 lakh crore in loans and interest could have been avoided if the Centre had kept its promises and supported the State in initiatives such as the Kaleshwaram project, Mission Bhagiratha, and Mission Kakatiya, among others.
The state government borrowed Rs 32,652 crore to implement its flagship Mission Bhagiratha scheme, which has received praise from the Centre, which has in fact launched the national version of Mission Bhagiratha after christening it as Jal Jeevan Mission.
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Meanwhile, in the state, repayment of the loan for the scheme, which provided 100 percent tap water to households in the state, has begun. However, despite the fact that the NITI Aayog recommended Rs 19,205 crore for the scheme, the same Centre that praised it has not approved this sum, forcing the State government to raise funds entirely from internal and external sources.
On the other hand, Telangana’s Central funding under the Jal Jeevan Mission is the lowest of any state, at Rs 188.23 crore. Surprisingly, the Centre claimed that Telangana had received Rs 3,981.98 crore under the scheme.
The Centre also refused to grant national project status to the Kaleshwaram project, despite having promised to do so under the Andhra Pradesh Reorganisation Act. As a result, the State government was forced to seek loans totaling nearly Rs 75,000 crore in order to carry out the massive multi-purpose lift irrigation scheme.
Finance Minister T Harish Rao recently announced that the Centre owes the State Rs 1.25 lakh crore under various heads.
He pointed out that the gaps in the Budget estimates occur only when the Centre stops funding, and that the State’s outstanding liabilities were reduced to 23.8 percent from 24.3 percent as promised, while the Centre’s liability had increased to 56.2 percent from 55.9 percent.
- Debt availed by Telangana government – Rs 2.83 lakh crore (March 2022)
- Debt on June 2, 2014 – Rs 75,577 crore
- Freshly borrowed loans after State formation – Rs 2,07,875 crore NABARD loans to Telangana government – Rs 19,430.93 crore
- Loans obtained by Telangana PSEs and corporations from nationalised banks – Rs 1.31 lakh crore
- Loan taken to implement Mission Bhagiratha – Rs 32,652 crore
- Niti Aayog’s recommendation for Mission Bhagiratha – Rs 19,205 crore
- Centre’s contribution to Mission Bhagiratha – Nil
- Loans taken from various sources for Kaleshwaram – Rs 75,000 crore approx.
- Pending dues from Centre under various heads – Rs 1.25 lakh crore
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