Telangana's Financial Strain: A Deep Dive into State's Cash Crunch

Telangana Chief Minister A Revanth Reddy highlights the state's financial challenges, citing a heavy debt burden and using a Rs 4,000 crore hand loan for employee salaries. Reddy blames past governance and emphasizes the need for employee cooperation amidst financial difficulties. Monthly revenue allocation struggles impact welfare programs and development projects.

Chief Minister A Revanth Reddy of Telangana has disclosed the state's financial woes, citing significant debt burdens requiring emergency measures such as obtaining a Rs 4,000 crore hand loan from the RBI to pay government employees' salaries.

Addressing the Legislative Council, Reddy urged employees to cooperate with the payment of Dearness Allowance (DA) amid the financial strain, despite salaries being paid punctually. He emphasized that the government belongs to its employees, requesting their input on financial strategies.

Reddy criticized the previous BRS regime for leaving the state's finances in disarray, likening the crisis to an internal 'cancer'. With monthly revenues of Rs 18,000 crore to Rs 18,500 crore, significant portions go to salaries, pensions, and debt servicing, leaving limited funds for welfare schemes and development projects.

(With inputs from agencies.)