FinMin tear apart Telangana CM over debt crisis in state

Union Finance Minister Nirmala Sithraman who is currently on her visit to Telangana lashed out heavily on the state government for raising debts beyound Fiscal Responsibility and Budget Management limits.

 

Further hitting the Telangana CM she said KCR has pushed Telangana into a debt crisis.

 

 

Coming down heavily on Telangana CM, FinMin said, "The State had crossed the borrowing limits prescribed by the Fiscal Responsibility and Budget Management (FRBM) Act and took loans beyond budget approvals given by the Assembly. Because of the huge debts, Telangana’s surplus budget slipped into a deficit revenue budget."

 

According to reports, she said the State Assembly was kept in the dark about the off-budget borrowings and it was also not reflected in the budget. "The Centre has a right to question the State governments but Telangana evaded a reply. A Central team even visited the State to enquire why the Rs 20,000 crore funding for implementation of the National Rural Employment Guarantee Scheme was not spent in full. But, the reply was not satisfactory," Sitharaman added.

 

Sitharaman claimed that KCR indulged in mud-slinging even though the Centre allocated funds to the state. The Finance Minister alleged that the government renamed Centrally sponsored schemes to gain political mileage.

 

She also slammed the TRS government for "inflating" the cost of the Kaleshwaram project to Rs 1.20 lakh crore.

The Union Minister said Telangana was fourth among the states with the highest number of farmers suicides. "As many as 91 out of every 100 farmers in Telangana are burdened with loans but Rs.1 lakh loan waiver scheme has not reached the farmers," she claimed.

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