There are many economists expressing concern regarding the insane
borrowing spree of loans that is expected to severely hurt the interests
of Telangana State in future. The TRS Government is being accused of
being unrealistic in dealing with State's finances.
The
government seems to be obsessed with flashy figures like Rs. 1 Lakh
Crore even as Telangana being labeled as the richest State in India is
causing more and damage. Many are strongly criticizing TRS Government's
decision to borrow huge loans.
There will be
massive borrowings for 2BHK Housing, Mission Bhagiratha, and also for
establishment of new power plants. The estimated loans are Rs. 40,000 Cr
for Mission Bhagiratha followed by Rs. 15,000 Cr for 2BHK Housing in one year!
This
may also violate the FRBM norms since both the projects are
non-revenue generating ones with no returns on capital amount. After a
moratorium period of first two years, the Telangana State will have to
pay Rs. 7,000 Cr annually on interest as well as re-payments of these
loans.
