HYDERABAD: Refuting the allegations of the Opposition on the mounting debts of the State, Chief Minister K Chandrasekhar Rao on Sunday said that his government has spent the borrowings on useful and productive works.
“We are not organising any feast to somebody with the borrowed amounts. The results of works taken up with the borrowed amounts will be witnessed by the people in next one year time. People are going to witness wonders,” the chief minister said.
In his reply to the general discussion on Annual Financial Statement (Budget) for 2019-20 in the State Legislative Assembly, the chief minister defended the decision to take loans. “Those who are running the State should have wisdom of economy. If it is lacking, it is nothing but foolishness.
We have adopted the progressive path and following the models of the USA, Japan, European Union and China. The USA’s cumulative debts are 60 trillion dollars. Do you think the USA has no wisdom? Japan’s debts are 240 per cent of their GDP,” he said.
He added that the State government had financial prudence and the debts were within permissible limit of FRBM Act. As per the FRBM Act, the debt to GSDP ratio should be 25 per cent. As per 2019-20 Budget estimates, the debt to GSDP ratio of the State was 21.39. The Central government’s debts were 48 per cent to the GDP, Rao pointed out.
He said that the State government guarantees too were given for Civil Supplies, Markfed, RTC and other essential and productive works.
Issues to be resolved
“Is it wrong to raise loans for the construction of Kaleshwaram, Mission Bhagiratha and Mission Kakatiya? Is it a crime to raise loans. Have we eaten “Daawat” with debt money?” Rao shot back to the Opposition.
The Kaleshwaram project would irrigate 45 lakh acres. The cost of the project would be realised by farmers in two crop seasons, he said.
Alleging that the Congress had not come out of its 1940s thinking style, he said: “The government should know how to leverage the economy. The State never defaulted in repaying the debts. Do not get confused and do not confuse the people on debt position.
Rao also refuted the allegations of CLP leader Mallu Bhatti Vikramarka that the SC and ST sub-plan funds were diverted in the State. “It is false and trash,” Rao said. He, however, said that the government would furnish the information on Special Development Funds to Bhatti and if there were any lapses, the government would correct them.
The chief minister said that the Dalits were neglected all these years, but the State government is committed to work for their development. Likewise, the Adivasis too should live peacefully and they too should get Rythu Bandhu amounts.
The Podu land issues would be resolved shortly, Rao said and added that he would tour the districts, convene Praja Darbars and resolve the issues of the tribals.