Hyderabad: Contrary to the allegations levelled by the Opposition Congress and BJP, Telangana, according to the Central government, has maintained strong financial discipline and emerged as the State with the second lowest debt to GDP (Gross State Domestic Product) ratio of 17 per cent among large States in the country. While Maharashtra occupied the top slot with lowest debt to GDP ratio of 16.9 per cent, the Centre’s debt to GDP ratio was a whopping 48 per cent.
TS debt within FRBM limits
Municipal Administration and Urban Development Minister K T Rama Rao, taking exception to allegations levelled by the Congress and BJP against the State government on the latter’s borrowings, in a tweet, said: “Telangana’s debt is well within FRBM limits and fiscally prudent.”
Replying to a question raised by MP Dushyant Singh in Lok Sabha, Union Minister of State for Finance Minister Anurag Thakur said the Fiscal Responsibility and Budget Management (FRBM) Review Committe report was submitted to the Central government recently. As per the report, Maharashtra and Telangana States were followed by Karnataka and Assam with debt to GDP ratio at 18.7 per cent and 18.9 per cent respectively. While Gujarat remained in fifth position with 19.2 per cent, the highest debt to GDP ratio was recorded by Jammu and Kashmir with 48.2 per cent followed by Punjab with 39.9 per cent.
Allegation by Congress, BJP
It may be recalled that both the Congress and BJP have been alleging that Telangana State’s debts had almost doubled since the State formation. The State government has consistently maintained that it was securing loans within the FRBM limits and was using the funds to create assets like irrigation projects and amenities to people.
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