Debt War Intensifies

KCR left Telangana in Rs 8.21 Lakh Crore Debt, says Bhatti

metro india news I hyderabad

Telangana Deputy Chief Minister Mallu Bhatti Vikramarka launched a sharp counterattack against BRS leaders K.T. Rama Rao and T. Harish Rao, accusing them of spreading misinformation on the state's finances while attempting to conceal what he described as the fiscal mismanagement of the previous BRS government.

Addressing a press conference at the Dr. B.R. Ambedkar Secretariat along with Ministers Ponnam Prabhakar and Adluri Laxman Kumar, Bhatti alleged that the BRS government had pushed Telangana into a severe debt trap during its ten-year rule. He claimed that the total liabilities inherited from the previous government—including FRBM borrowings, government-guaranteed corporation loans, pending employee bills and DISCOM dues—amounted to Rs 8,21,651 crore.

Bhatti said the Congress government had already repaid Rs 2,08,681 crore towards principal and interest on these liabilities within two-and-a-half years, while raising Rs 1.77 lakh crore in fresh borrowings to meet governance and welfare commitments. He accused the BRS of selectively presenting figures and misleading the public through "Goebbels-style propaganda."

Defending the government's financial management, the Deputy Chief Minister said the administration had undertaken debt restructuring, reducing the repayment burden between 2025-26 and 2031-32 from Rs 34,058 crore to Rs 11,915 crore, resulting in savings of Rs 22,142 crore for the state. He asserted that fiscal discipline had enabled the government to pay salaries on time while continuing welfare initiatives, including Rythu Bharosa.

Bhatti also rejected allegations concerning Singareni Collieries, calling BRS claims that 40 lakh tonnes of coal had gone missing "completely baseless." He said the company has a robust geo-fencing and monitoring system that leaves no scope for illegal diversion of coal. To dispel doubts, he announced that the Singareni Vigilance Director had been instructed to conduct a comprehensive inquiry and submit a report.

The Deputy Chief Minister further accused the previous BRS government of failing to secure new coal blocks for Singareni despite expanding thermal power capacity, and alleged that valuable mining blocks were instead handed over to private entities, causing long-term losses to the state.

Highlighting reforms in welfare hostels, Bhatti said the Congress government had increased cosmetic allowances by 200%, streamlined diet charges for timely release every month and introduced transparent procurement of uniforms, shoes and books through open tenders.

Calling on the opposition to debate with facts rather than "false narratives," Bhatti asserted that the Congress government remains committed to transparency, fiscal responsibility and protecting Telangana's financial interests.