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Is This The Reason For Delay In Cabinet Expansion In Telangana?
By: Tupaki Desk | 16 Jan 2019 4:19 AM GMT
KCR will go down in the history of India as the only Chief Minister who has not constituted his cabinet even after a month of swearing in. Now, the indications are that he might not induct ministers till the Magha Masam sets in and this could mean that AP will have a full-fledged cabinet only in February.
On e reason for this delay is said to be the bad state of Telangana economy. Thanks to KCR's sops and money transfers from various government departments to the voters in the name of Rythu Bandhu and other schemes have completely drained off the state treasury. The repayments and payment of interest on the loans is proving to be very difficult for the Telangana Government. According to Government. The total loans have gone up to 1,23,821.49 crore. Loans for two-bed room scheme, Mission Bhageeratha, Mission Kakatiya and irrigation projects meant that the state had to pay a staggering Rs 11,500 crore only towards the interest. According to the rules, the Government can only pay only 10 per cent of its revenue from taxes. Thus, it can only 7900 crore. This means, getting further loans will become very difficult.
Experts say that most of these loans were not mentioned in the Telangana budget and were secured in the name of various corporations. So, the Government accounts still paint a rosy picture of the economy of the state. But, the fact is the state is mired in debt burden. For instance, the Mission Bhageeratha corporation got 16413 crore loans, while irrigation department got Rs 7031 crore loans. The Power Finance Corporation got a loan of Rs 3360 crore, Housing corporation got Rs 3031 crore and the Hyderabad water board has secured Rs 600 crore. All these are now turning out to be major headaches for KCR. He is trying to find a wayout of this mess. The Cabinet expansion might happen only after that.
On e reason for this delay is said to be the bad state of Telangana economy. Thanks to KCR's sops and money transfers from various government departments to the voters in the name of Rythu Bandhu and other schemes have completely drained off the state treasury. The repayments and payment of interest on the loans is proving to be very difficult for the Telangana Government. According to Government. The total loans have gone up to 1,23,821.49 crore. Loans for two-bed room scheme, Mission Bhageeratha, Mission Kakatiya and irrigation projects meant that the state had to pay a staggering Rs 11,500 crore only towards the interest. According to the rules, the Government can only pay only 10 per cent of its revenue from taxes. Thus, it can only 7900 crore. This means, getting further loans will become very difficult.
Experts say that most of these loans were not mentioned in the Telangana budget and were secured in the name of various corporations. So, the Government accounts still paint a rosy picture of the economy of the state. But, the fact is the state is mired in debt burden. For instance, the Mission Bhageeratha corporation got 16413 crore loans, while irrigation department got Rs 7031 crore loans. The Power Finance Corporation got a loan of Rs 3360 crore, Housing corporation got Rs 3031 crore and the Hyderabad water board has secured Rs 600 crore. All these are now turning out to be major headaches for KCR. He is trying to find a wayout of this mess. The Cabinet expansion might happen only after that.
