HYDERABAD: Telangana has a public debt of Rs 2,37,747 crore which includes Rs 2,384 crore in external debt, according to a reply given by the Centre in Parliament on Monday.
In response to a question about Telangana public debt and loans, it was revealed that the state has Rs 2,34,912 crores in outstanding debt as of December 13, 2021. The parliament query also revealed that RBI has not provided any loans to Telangana government.
“However, the RBI facilitates financial accommodation in the form of special drawing facility, ways and means advance, and overdraft to supplement the temporary mismatches between receipts and payments,” the Centre said.
Among these organisations are the Japan International Cooperation Agency, the International Bank for Reconstruction and Development, and the International Development Association. The average annual interest payment to these agencies over the next three years is Rs 22 crore. In response to a question from TPCC president A Revanth Reddy, Centre revealed that as additional assistance, externally aided projects received Rs 956 crore and Rs 30 crore as grant in same year. However, no grant has been made to state since then, and the loan in the form of externally aided projects has gradually decreased from Rs 956 crore in 2016-17 to Rs 207 crore in 2019-20.
“If spent on capital expenditure, it will come back in rotations. But if spent on revenue expenditure, it will cause long-term strain on state finances,” said Dr Krishna Reddy Chittedi UoH assistant professor, school of economics.
