Etala defends taking loans for development projects

Finance Minister Etala Rajender informed the Legislative Assembly on Tuesday that the Telangana Stat has debts of Rs. 1,35,554.03 crore.

Replying to a question raised by Congress MLA T. Jeevan Reddy and others during Question Hour, the Finance Minister said the government has borrowed loans of over Rs. 1.35 lakh crore which includes Rs. 22,485.06 crore taken from Central Government and other financial institutions. He said that the interest burden on the State Exchequer in 2016-17 was Rs. 8,609.19 crore.

Speaking on the issue, Jeevan Reddy accused the TRS Government of pushing Telangana State into huge debts. As against the national average of 33%, he said that debt burn on Telangana State has crossed 71%. He said every citizen of Telangana today in is debts of Rs.  40,000 and by the end of 2018 all children will be born with each having a debt of over Rs. 80,000.

Leader of Opposition K. Jana Reddy sought complete details of loans borrowed by various agencies.

In his reply, Etala strongly defended State Government's decision to take loans for various projects. He said every rupee of loan was being spent for development of Telangana State. He said loans were taken within the limits approved by the Central Government. He said Rs. 40,000 crore were taken for Mission Bhagiratha project. Similarly, loans were also taken other institutions like Civil Supplies Corporation and RTC. He said banks and other financial institutions have approved the loans based on the growth rate of Telangana. He said Prime Minister Narender Modi and several union ministers have praised the fast pace growth and development of Telangana State.