Telangana: Can Revanth Reddy deliver Congress's promises?
As Anumula Revanth Reddy gears up to become the next chief minister of Telangana, he faces the challenge of balancing the state's finances while delivering on the "six guarantees" promised by the Congress during the recent assembly elections. With Telangana's public debt estimated at Rs. 3,57,059 crore, fulfilling these guarantees will be no easy feat. One key guarantee includes free travel for women on Telangana State Road Transport Corporation (TSRTC) buses, which could cost the government Rs. 2,500 crores annually.
Why does this story matter?
Reddy—credited with the Congress's win in the state assembly elections—has officially been chosen as Telangana's next chief minister. He will be sworn in on Thursday. Notably, his candidacy was opposed by senior leaders, but eventually, he was picked by Congress's national president, Mallikarjun Kharge. On Sunday, Congress registered a huge victory in the Telangana elections by securing 64 seats in the 119-member assembly, dethroning the Bharat Rashtra Samithi (BRS) government for the first time since the formation of the state.
Farm loan waiver is another challenge
Another key promise made by the Congress party is to waive farm loans up to Rs. 2 lakh. To implement this, the government would need to allocate at least Rs. 35,000 lakh crore over the next five years. Additionally, the party pledged to provide Rs. 15,000 to farmers and Rs. 12,000 to farm workers per acre annually under the Rythu Bharosa guarantee scheme. This would require nearly Rs. 1 lakh crore in funding over the next five years.
Telangana's state debt and additional challenges
Reddy's task of implementing these guarantees is further complicated by the state's debt. The problem is exacerbated by the central government's refusal to increase borrowing limits under the Fiscal Responsibility and Budget Management Act (FRBM) of 2003. Per NDTV, Telangana's outstanding public debt is estimated to be Rs. 3,57,059 crore, according to the budget estimates for 2023-24. This amount is 23.8 percent of the Gross State Domestic Product (GDSP).
Reddy could face resistance within Congress
Senior journalist and political analyst S Nagesh Kumar believes that Reddy's first challenge will be implementing the "six guarantees" while navigating political obstacles. Unlike the previous government, the Congress party will face stronger opposition in terms of numbers. Kumar also noted that Reddy may encounter resistance within his own party and from the opposition regarding the fulfillment of these election promises.
