Loans and debts aimed at development : Vanam Jwala Narasimha Rao

Loans and Debts aimed at Development 
Vanam Jwala Narasimha Rao

The three week long Telangana State Legislative Assembly Budget session was adjourned sine die preceded by an extremely dignified, meaningful, efficient and effective deliberations. The House passed the Appropriation Bill, which enables the government to spend in accordance with the grants allocated in the Budget and voted by the House. The Budget Session, which started on March 10, 2017, was conducted in tune with the decisions taken in the Business Advisory Committee (BAC).

Except two minor distractions leading to suspension of two TDP members for interrupting the Governor’s Address and five BJP members for rushing towards the Podium, the entire proceedings went off normally. Prior to the four Budget Sessions held after the Telangana Government came to power, the earlier Budget sessions held under the united AP,  the demands were always guillotined since the grants were never discussed or debated. For the peaceful and meaningful conduct of the current Budget session, both the Government and the Opposition members should be congratulated. Honourable Chief Minister and leader of the House K Chandrashekhar Rao, before commencement of his reply to the debate on the Appropriation Bill mentioned as to how everyone is appreciating the way Assembly Sessions were being conducted and for this he thanked the Members. Speaker S Madhusudhanachary also congratulated and thanked the members for helping him conducting the business properly.

On one or two key issues, the House debated repeatedly. They were also raised during the debate on the motion of thanks to the Governor’s Address, during the debate on the Budget and demands as well as during the discussion on Appropriation Bill. These issues were raised by opposition members, the Chief Minister, the Finance Minister during these debates. One of these issues was on the State’s Growth Rate and other is on the so-called debts incurred and loans raised by the Government as pointed out by the Opposition.

Replying to the debate on the motion of thanks to the Governor’s Address, CM KCR said that, at one point of time when a single party was in power both at the Centre and State, the Central Government alone was in a position to lend loans to the States. CM mentioned about the injustices meted out to Telangana under the united AP, facility to spend State’s own resources for the state itself after the formation of the Telangana, the increased self confidence levels among the people after the State achieved the economic progress leading to ability to generate money, how the State proved that it has the wherewithal to mobilize its own resources, mapping of financial and human resources, etc. The CM also underlined the need to have the mindset to discriminate what is good and what is bad in a democracy.

BJP leader G Kishan Reddy participating in the discussion on motion of thanks to Governor, found fault with the government, for mentioning about improved growth rate. He accused the government of misleading the people through the Assembly. He also termed the Budget as magic of numbers. On raising the debts and loans, Kishan Reddy said this is not Bangaru Telangana (Golden Telangana) but a Bakila Telangana (Telangana of Debts). The budget figures and growth rate are inflated for enhanced FRBM limit alleged Kishan Reddy. He further alleged that the entire state is in debt trap for the last three years and common man is pushed into deep debts. He argued that the Debt servicing became a burden and that the Budget roamed in a dream world.  Leader of the Opposition K Jana Reddy also spoke on similar lines.  On whether to borrow or not, Jana Reddy said there was nothing wrong in incurring debts but the problem is that if debts exceed the assts it will lead to inflation.  He also reeled out statistics to show that under the Congress rule in the then AP assets always exceeded the debts. He also found fault with the government’s claim that the development has crossed the state borders. He said,” Budget may have crossed the seven seas but development is standstill. Budget was not based on facts but was more of creating confusion among the people.

Initiating the debate on Budget, Congress Member Uttam kumar Reddy said the Budget was jugglery of figures and that Growth was shown boosting the figures. He said there is a lot of increasing in debts and debts raised by giving government guarantees also on the increase, which was not good for the state or its economy. “What kind of signals it is showing?” he asked.

In his reply, the CM admitted that the government is certainly raising loans and incurring debts. “We are raising loans, but, utilizing them for useful purposes and repaying them in yearly installments. We have budgeted Rs 20,000 Crore this year for the debt servicing,” he said.  CM said that the fact that the state is able to raise loans is ample proof for its economic buoyancy, financial capacity and fiscal efficiency. By God's grace the state economy is intact and every year the growth rate will be 15 per cent. For the charges leveled by the Opposition that debts have increased, the CM cited the example of Nagarjuna Sagar Project.  The initial proposals for the project were only Rs 92 Crore. Now it’s worth of about Rs 92,000 Crore. The money value then and now are vastly different.  Based on the present value the quantum of debts will be more, he explained.

The CM also rebutted the observations made by Uttam Kumar Reddy that the government had boosted the figures in Budget to raise more loans. The CM explained in detail how financial and economic trend are subjected to change in tune with times and how monetary value is also changing. He said based on the ever-changing necessities the loans are raised and assets are created. World leading countries like the US and China which are dictating the universal economy also raising loans and incurring debts said CM. We have to raise loans to implement various schemes and it would be crime if we fail to spend the money even though we have to ability to do so explained CM. Eminent Economists world wide are talking about the wisdom of economy and the world over have several economic models such as the Amartya Sen’s and the US’s. CM said that among the available Economic Models, the State is adopting its own Mixed Economy Model. He also justified boosting up the figures by saying that, it only shows the ability to visualize higher goals and there is nothing wrong to be optimistic in achieving targets.

With his timely interventions as and when the issue of growth rate and debts was raised by opposition, the CM was able to send a message to the people through the House and through the members and these are useful for the development of the state. END