In meeting with FM Sitharaman, BJP leader raises ‘fiscal concerns’ in Telangana government’s borrowings

Telangana BJP vice president apprised Sitharaman of the Reddy-led dispensation seeking further borrowings beyond the FRBM limit.


Published May 20, 2024 | 8:37 PMUpdatedMay 20, 2024 | 8:37 PM

Telangana BJP vice president NVSS Prabhakar with Union Finance Minister Nirmala Sitharaman. (X)

Telangana BJP vice president NVSS Prabhakar on Monday, 20 May, raised concerns with Union Finance Minister Nirmala Sitharaman over the financial management of the Congress government in Telangana, accusing it of unsustainable borrowings.

In a meeting, Prabhakar apprised Sitharaman of the “deteriorating” financial position of Telangana, claiming the Reddy-led dispensation had already obtained ₹12,905 crore in new loans within six months of assuming power, and was seeking further borrowings beyond the Fiscal Responsibility and Budget Management (FRBM) limits.

The BJP leader alleged that the previous BRS government had taken huge loans in the name of setting up corporations, and the current Congress regime was planning to set up more such entities to facilitate fresh borrowings from the market, according to a statement.

Prabhakar, a former MLA from Uppal constituency, also alleged the Congress government was burdening the state exchequer with “political appointments” like advisors and chairpersons to various corporations.

He accused the state administration of diverting central funds meant for specific schemes, including those for local bodies.

The BJP leader urged Sitharaman to put in place new RBI guidelines to ensure fiscal discipline in Telangana, the statement said.

There was no immediate comment from the state government on Prabhakar’s allegations.

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