How Telangana Debts Increased: White Paper Answers!

The Assembly sessions in Telangana after the change in power started on a heated note. After the change in their positions, the Congress and BRS are adding intensity to the sessions with intense arguments and counterarguments. A heated war of words has been going on.

The Congress party which has been talking more about the finances and financial stats released a white paper on state finances. The white paper mentioned the details of the debts and the spendings in the state.

The white paper released by Telangana Deputy Chief Minister Mallu Bhatti Vikramarka says that the state has debts to the tune of Rs 6,71,757 crores. The debts increased by around 24.5 percent in the state in the past ten years.

If we have to take anything from the white paper, it says that by the time the state was formed, it was in surplus and now it is in heavy debt.No tangible fiscal assets were created in the state to the tune of the amount that was spent in the last 10 years.

As a crackdown on the money that was spent 34 percent went into interest on the debts in the revenue income while 35 percent was spent on the salaries and pension of the employees. The Deputy Chief Minister said that as the majority of the money was spent on these areas, no attention was given to the education and health sectors.

The Congress party has been alleging that the BRS party left the state in a huge debt. Now the white paper highlights the same saying that the debts increased by around tenfold since the formation of the state.

The White Paper released by the Congress party says that there is a big gap of around 20 percent between the budgeted amount and the actual expenditure in the state. If we draw a comparison between Telangana and other states the gap is quite high between the budget and expenditure.