Telangana Restructuring Rs 2 Lakh Crore Debt, Centre Discriminating Against State: CM Revanth Reddy
Bengaluru, June 7 (TNT): Telangana Chief Minister A. Revanth Reddy has said his government is undertaking a major debt restructuring exercise involving nearly ₹2 lakh crore to improve the state’s fiscal health and reduce interest burdens.
Participating in an interaction with N. Ram, Director of The Hindu, during a session titled “By, For, and Of the People: Good Governance for Telangana” at The Hindu Huddle in Bengaluru on Saturday, the Chief Minister said the state inherited substantial liabilities and was taking corrective measures to strengthen its finances.
Reddy said many short-term loans had been raised in the past at interest rates ranging from 11 to 11.5 per cent. The government is now restructuring these borrowings by converting them into long-term loans carrying lower interest rates of 7 to 8 per cent.
“We are in the process of restructuring debts worth ₹2 lakh crore,” he said, adding that the move would significantly reduce the financial burden on the state.
The Chief Minister also criticised the Goods and Services Tax (GST) framework, stating that neither the Centre nor the states were adequately addressing structural issues within the tax system.
He said the Telangana government had appointed noted economist Arvind Subramanian as an advisor on GST-related reforms and revenue enhancement measures.
According to Reddy, Telangana’s monthly GST collections had remained below ₹3,500 crore for the past seven to eight years but had crossed the ₹4,000-crore mark during each of the last six months.
He claimed the state had generated an additional ₹5,000 crore in revenue over the past six months by curbing corruption and plugging revenue leakages rather than by imposing new taxes.
The Chief Minister also accused the Union Government of discriminating against Telangana in matters related to investments and financial support.
“We will fight against the Central Government’s discrimination,” he said, alleging that investors interested in Telangana were often being encouraged to invest in Gujarat instead.
Reddy maintained that despite such challenges, the Telangana government remained committed to attracting investments, strengthening public finances and implementing governance reforms aimed at accelerating economic growth and welfare delivery.
TNT KS
