Home Tags Financial crisis

Shabbir Ali blames KCR for T-financial crisis


Leader of Opposition in Telangana Legislative Council Mohammed Ali Shabbir has accused Chief Minister K Chandrashekar Rao of turning Telangana from richest to a bankrupt State.

Addressing media at Gandhi Bhavan here on Wednesday, Shabbir Ali claimed that the State not only lacks funds to spend on welfare and development schemes, but it is also unable to pay salaries and pensions on time. The notifications for 25,000 jobs, which KCR promised to issue in July, too have been delayed due to financial crisis.

“The financial constraints have also delayed the issue of job notifications as recruitment of 25,000 staff will increase the salary bill by Rs. 900 crore. The State’s salary bill has already increased by Rs. 7,000 crore from Rs. 18,400 crore at the time of formation of Telangana to nearly Rs. 25,000 crore now. “Only eight days are left in July and nothing has been done to issue job notifications,” he said.

At the time of formation of Telangana on June 2, 2014, Shabbir Ali said, the State was considered rich with a revenue surplus of Rs. 7,500 crore. However, in the last 14 months, the situation has reversed and now the State Government is struggling hard to borrow at least Rs. 5,000 crore to pay salaries, pension and clear crop loan waiver dues, he added.

“While presenting the first budget of Rs. 100,637 crore on November 5, 2014, finance minister Etala claimed that the State will have a revenue surplus of Rs. 301.02 crore. However, the State Government spent only about Rs.60,000 crore in 2014-15. Similarly, in his second budget presented on March 11 this year, Etala stated that the budget of Rs. Rs. 115,689 crore for 2015-16 will have a revenue surplus of Rs. 531 crore,” Shabbi Ali said  showing a video clipping of the Chief Minister KCR’s statement made in Assembly wherein he claimed that Telangana is the second richest State after Gujarat.

“The Congress leader pointed out that the State Government has recently borrowed Rs. 1400 crore from the open market for 10 years @ 8% interest by participating in the State Development Fund auctions held by RBI,: he said.

He said the State Government immediately needs at least Rs. 5,000 crore to clear salaries (Rs. 2,000 Cr), pensions (Rs. 800 Cr) and dues of second installment of crop loan waiver amount (Rs. 2250 Cr). He also claimed that the State Government did not fully release Rs. 2,200 crore, which it sanctioned towards dues of second installment of crop loan waiver.

He blamed KCR’s inexperience, mismanagement and maladministration were primarily responsible for the present crisis.




Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.



[X] Close
[X] Close