A miffed Revanth Reddy was responding to remarks from government employees’ union threatening to ‘wage war’ against his government. He alleged the BRS government left unpaid dues of ₹50,000 crore, including to Singareni Collieries and contractors, and took loans at steep 11% interest, questioning KCR's financial decisions and priorities.
Published May 05, 2025 | 10:41 PM ⚊ Updated May 05, 2025 | 10:41 PM
Revanth Reddy says Telangana has gone bankrupt under the weight of loans taken by previous BRS government
Synopsis: Telangana Chief Minister A Revanth Reddy on 5 May declared the state bankrupt, blaming the previous BRS regime’s financial mismanagement. Speaking at a media event, he said no institution is willing to lend to Telangana, painting a grim picture of the fiscal crisis. He also questioned government employees’ union leaders over their threats of agitation, asking whom they were fighting against
Telangana Chief Minister A Revanth Reddy on Monday, 5 May, declared that Telangana state has gone bankrupt.
Speaking at a private event organised by a media house in Hyderabad, the Chief Minister painted a grim picture of the state’s financial condition. He blamed a decade of financial mismanagement by the previous BRS government, for pushing Telangana to the brink of economic collapse.
He said: “Telangana has gone bankrupt. No financial institution is willing to extend loans to us. Lenders treat us like criminals trying to deceive them. Even in Delhi, we are looked upon with suspicion,” he said. “Even if you slash me, I won’t be able to generate additional revenue for the state. If you want, come and cut me up and eat me,” he added, stressing the dire fiscal situation.
Referring to employees’ union leaders’ statements that they were getting ready to wage war with the government, the Chief Minister asked them whom they intended to clash with. “All of us—elected representatives, employees, retired staff, and those working on contract or outsourcing—make up around 9 lakh people, just about 2 percent of the state’s population. Are you planning to wage war against the very people who are paying your salaries, pensions, and perks?” he asked.
Though he didn’t mention them by name, the chief minister was referring to the Telangana State Road Transport Corporation (TSRTC) employees’ unions, which have threatened to go on strike from 7 May if their demands— taking them on government rolls — are not addressed.
Explaining the state’s debt burden, Revanth Reddy said the government was paying ₹7,000 crore per month in loan installments and interest, a steep rise from ₹500–600 crore per month at the time of Telangana’s formation in 2014. He said the state’s monthly revenue stands at ₹18,500 crore, but the government requires ₹22,500 crore to meet its commitments.
“Where do I find the extra money? Should we double the price of petrol, rice, or other essentials? You tell me,” he said, throwing the question back at the employees’ union leaders.
Revanth Reddy invited employees’ unions to hold talks with the Chief Secretary, Finance Minister, or senior finance department officials. “We will lay the state’s financial records before you. You will see that Telangana is operating on a very tight budget. Advise me as to how I can raise your salaries without defaulting on loan repayments or disrupting welfare schemes?” he asked.
Urging employees to make an introspection, the chief minister questioned the rationale behind the aggressive posture of the unions. “Why are you threatening to wage war? Is it because you are receiving your salaries on the first of every month, something that never happened under the previous government in the last 10 years?”
He said that despite the state’s poor finances, his government has ensured uninterrupted disbursement of welfare benefits and salaries. “In the last 16 months, we have transferred ₹30,000 crore to farmers under various schemes,” he said.
He accused the previous BRS government of leaving behind massive unpaid debts, including dues to Singareni Collieries and contractors which are waiting for clearance of bills for a whopping ₹50,000 crore. “Some of their loans were taken at exorbitant interest rates of up to 11 percent. If it were your own money, would you accept such terms?” he questioned, taking a swipe at former Chief Minister K Chandrasekhar Rao.
He warned employees not to fall prey to politically motivated agendas. “Those who wage war against the people rarely meet with success. Beware of the designs and motives of certain political parties. Don’t become pawns in their games. If you push for protests with fresh demands now, the fragile financial system of the state could collapse under its own weight,” he cautioned.
Responding sharply to the chief minister’s remarks, BRS Working President KT Rama Rao took to X (formerly Twitter), stating: “Telangana is NOT bankrupt, Mr. Cheap Minister. It is you and your corrupt Congress party who are intellectually bankrupt and morally bereft.”
Telangana state is Not bankrupt Mr. Cheap Minister
It is you & your corrupt Congress party that is intellectually bankrupt and morally bereft
Will address a PC on the issue of state finances at 12 Noon tomorrow #CongressFailedTelangana
— KTR (@KTRBRS) May 5, 2025
(Edited by Ananya Rao)
