Telangana CM Revanth Reddy.
Credit: PTI File Photo
Hyderabad: Telangana Chief Minister A Revanth Reddy has once again acknowledged the state's precarious fiscal position, revealing that financial institutions in Delhi view state representatives as "thieves" when they attempt to secure loans. He lamented that officials are struggling even to get appointments with lenders.
Speaking at an award function for police personnel on Monday, he addressed concerns from government employees who have been pressing the state administration to fulfill long-pending demands, including revival of the Old Pension Scheme and reimbursement of medical bills.
"Telangana's financial position is not in good shape. We are unable to raise loans as nobody is willing to come forward with offers. Bankers are looking at Telangana representatives as thieves. Nobody is giving appointments in Delhi. Nobody believes in us. Self-control and financial discipline are our only solutions. Employees are part of the Telangana family," he said at a police awards function.
The Telangana Employees' Joint Action Committee (JAC) submitted a memorandum of 37 demands to the state government last month, urging early resolution of these long-pending issues concerning government employees.
Revanth Reddy further revealed that the state government has paid between Rs 9,000 crore and Rs 10,000 crore on average toward debt servicing in the last 16 months for loans raised at higher interest rates by the previous BRS government.
He disclosed that the state requires Rs 22,500 crore every month to meet its obligations but can only generate Rs 18,500 crore. "Even if you cut me into pieces, I can't raise more than Rs 18,500 crore per month. Tell me, should we stop welfare schemes? Should we raise petrol prices to Rs 200? That's not right. Protests and hunger strikes at this stage could lead to a complete collapse of the government machinery," he warned.
He said that his government has practiced fiscal discipline since taking office, avoiding lavish spending. He pointed out that for the first time in a decade, state employees are receiving their salaries on the first of each month. "As Chief Minister, I am entitled to fly by special aircraft, but I sometimes travel economy. I never publicised this. Unfortunately, financial institutions are treating us like thieves," he added.
This is not the first time Revanth Reddy has spoken openly about Telangana's precarious fiscal position. In March, he admitted the state's severe financial crisis, revealing challenges in meeting basic government obligations such as employee salaries. During a discussion on Dearness Allowances (DA) in the Legislative Council, he disclosed that the state is borrowing Rs 4,000 crore monthly from the Reserve Bank of India to ensure timely salary payments.
Given these financial limitations, he asked government employees to prioritize between receiving regular salaries or dearness allowances. This candid admission comes as Revanth Reddy's administration faces mounting criticism for failing to implement key promises from the Congress party's six guarantees announced during the 2023 assembly elections, with financial constraints hampering their execution.