State loans spark a war of words between Bhatti, Harish in House

Hyderabad: Who is speaking the truth? The issue of FRBM and non-FRBM loans taken by the government had led to a war of words between the Deputy Chief Minister Mallu Bhatti Vikramarka and BRS member T Harish Rao, who both gave the figures related to the loans taken by the government.

While the BRS leader alleged that the Congress government procured Rs 1.27 lakh crore during the last year, the Finance Minister said that the government was spending Rs 40,000 crore only for repaying the interests on the loans taken by the previous BRS government. The issue came up during the question hour in the Assembly on Tuesday when Harish Rao and others questioned the government on the guarantees given to the government and non-government sector from December 2023.

The Finance Minister said that as of November 30, 2024, the guarantee given and amount drawn was for Rs 51,277.71 crore. He further said that as of November 30, 2024, FRBM loans drawn from December 2023 to November 2024 were Rs 52,118 crore. Similarly, the non-FRBM loans drawn by corporations/SPVs from December 2023 to November 2024 were Rs 61,991.14 crore. The quantum of guarantee for non-FRBM was Rs 51,277.71 crore, and the amount of loans taken by public sector undertakings without guarantee was Rs 10,099.70 crore.

Harish Rao pointed out that, as per the RBI, the total loans taken by the government during the last year was Rs 1.27 lakh crore, which means it would procure over Rs 6.36 lakh crore in five years. He claimed that the BRS government had procured Rs 4.17 lakh crore in loans, including the 1.75 per cent additional borrowing allowed during the Covid period and not Rs 7 lakh crore claimed by the Congress party. Responding to this, Bhatti Vikramarka said that what was claimed by Harish Rao was far from the truth. He said that the government was not taking loans beyondFRMB limits and said that the destruction caused by the BRS government during the last ten years cannot be set right in just one year. He said that the government was spending Rs 66,000 crore only to repay the interest on loans taken by the previous government. “We are paying Rs 40,000 crore to DISCOMs in lieu of free power. In this way we have provided free power that was given during the BRS government. We are paying Rs 18,000 crore dues of the civil supplies corporation,” said Bhatti Vikramarka. He also criticised the BRS members for coming with placards in the House.

Vikramarka said that BRS leaders were bringing a privilege motion against him for stating that the tenant farmers should be provided Rs 12,000 per year. He also objected to BRS walking out of the BAC meeting abruptly. At this point, Harish Rao alleged that the minister was misleading the House and said that the privilege motion was not for the comments of tenant farmers but against the misleading claims of Rs 7 lakh crore loans. He dared the government to have a discussion on financial issues.