Telangana Govt: How to overcome financial challenges?

It is learned that the government has decided to conduct a study with a consultancy firm on how to overcome the financial challenges in the state. It has been learned through reliable sources that the officials of the Finance Department have been instructed to identify and report the consultancy within a week. It is reported that the financial situation of the state was discussed in the last two cabinet meetings. It is learned that after the items on the agenda were over and all the officials had left, the irrigation projects under construction, adjustment of funds required for other schemes, problems faced in undertaking new works and so on were discussed. Additional funds have to be given for some schemes including loan waiver. Most of the money is going towards repayment of principal and interest on previous debts. There is a situation where more than Rs.1000 crore per month cannot be given for works in the constituencies. This is the actual situation despite the pressure from the ministers and MLAs,'' the Chief Minister said. It is reported that the economic situation was also discussed in the recent cabinet meeting.

"From October 2023 to October 15, 2024, the government took a loan of Rs. 49,618 crore, but had to pay Rs. 56,440 crore as principal and interest. Actually, we have spent Rs.21,881 crore under investment expenditure while paying this amount under interest. "We have spent Rs. 54,346 crores on various programs including the government's priority schemes like farmer loan waiver, handloom, gas subsidy and home lighting," Deputy Chief Minister Bhatti Vikramarka's office said in a statement recently. "F.R.B.M. There is a situation where not even a rupee can be spent on the loans taken under the law and for development works and welfare programs. More than Rs.15 thousand crores have to be paid from the exchequer, which is not even enough to pay the principal and interest of the previous debts. It has become a major obstacle to the government's priorities,'' several ministers are said to have expressed concern. In this context, it has been learned that a study has been done with a consultancy firm with international experience in the financial sector and it has been decided to ask for suggestions to overcome the financial problem and reduce the debt burden. It is reported that the government has instructed the officials of the finance department to finalize within a week.