The Majlis-e-Ittehadul Muslimeen (MIM) and Congress have expressed concern at the prospect of public debt and outstanding government guarantees touching ₹ 3.3 lakh crore by March next year.
Initiating the debate on budget in the Assembly on Wednesday, MIM leader in the House Akbaruddin Owaisi said of the ₹ 3.3 lakh crore, public debt itself was expected to be ₹ 2.29 lakh crore, which will be 20.74% of Gross State Domestic Product (GSDP). This will thrust a 40-year burden on the people of the State at ₹ 14,500 crore as debt service and ₹ 6,000 crore towards repayment of principal each year, Congress floor leader Mallu Bhatti Vikramarka said later.
Mr. Owaisi said the public debt had increased substantially from ₹ 61,711 crore when Telangana was formed in June 2014 to ₹ 1.99 lakh crore till now. As a percentage of GSDP, the growth was 16.06 to 20.55 and 20.74 next year. Though the State’s annual borrowings was within Fiscal Responsibility and Budget Management (FRBM) limits, the interest burden mounted two-and-half times.
In these circumstances, Mr. Owaisi said there was no choice with the government but raise extra resources.
He lamented the negligence of government in development of Old City and said pedestrianisation near Charminar and cleaning up of Musi river remained mere slogans since 1999 when he was first elected MLA. Though he was the first to raise voice in Assembly for metro rail in Hyderabad, the Old City was overlooked for implementation of the project. The MIM submitted the alignment of metro rail without touching 93 religious structures en route which had become a stumbling block but no headway was made.
Mr. Vikramarka asked how the government proposed to earn the projected non-tax revenue of ₹ 30,600 crore in 2020-21 when the same had touched just ₹ 12,275 crore so far this year. He warned that the government was again trying to go for borrowings after making meagre allocations for various sectors.
He demanded an inquiry into allotment of maize to some of the big players in poultry industry as they got huge consignments in violation of eligibility norms.
Mr. Gandra Venakataramana Reddy of TRS requested the government to explore a new scheme for SCs and STs in lieu of allotment of three acres of agricultural land as it had become difficult to acquire land since farmers did not want to give up their holdings after availability of plenty of water from Kaleswaram irrigation project.
