Telangana’s young Chief Minister, A. Revanth Reddy, has captured headlines with bold proclamations and ambitious promises, the most striking of which is his pledge to make the state a one-trillion-dollar economy. This declaration, however, comes amid a host of expensive schemes and fiscal challenges, raising serious questions about the feasibility of his vision. His promises, ranging from loan waivers to welfare schemes, are indeed well-intentioned but might strain the state’s already burdened exchequer.
One of the major challenges facing Revanth’s administration is the immense debt inherited from his predecessors. Telangana’s total debt stands at Rs 4 lakh crore, including both budgetary and off-budget borrowings, which already places considerable strain on state finances. According to the state budget for 2023-24, Telangana’s outstanding public debt is estimated at Rs 3.57 lakh crore, amounting to 23.8% of the Gross State Domestic Product (GSDP). This high debt ratio indicates that the state’s fiscal health is already fragile, and implementing any additional high-cost promises could further exacerbate the situation.
During the election campaign, Revanth Reddy’s Congress party made several promises, each of which carries a hefty price tag. For instance, the revival of the Musi River project and the rehabilitation of riverbed residents are both expected to cost the government thousands of crores. Similarly, his six major poll promises, including free travel for women on state buses, will also put enormous financial pressure on the government.
Perhaps the most popular among these promises is the free travel scheme for women on Telangana State Road Transport Corporation (TSRTC) buses. According to government sources, the TSRTC generates Rs 2,500 crore annually from women passengers. If the scheme is implemented, the government will have to compensate the corporation for this lost revenue, in addition to addressing TSRTC’s current Rs 6,000 crore accumulated losses. This scheme, while appealing to voters, poses a significant financial challenge for the already cash-strapped corporation.
One of Revanth Reddy’s flagship promises is the waiver of farm loans up to Rs 2 lakh. In comparison, the previous Bharat Rashtra Samithi (BRS) government under K. Chandrashekar Rao (KCR) had budgeted Rs 21,000 crore for loan waivers of up to Rs 1 lakh. Implementing the Congress’ more generous scheme will require at least Rs 35,000 crore over the next five years. With around 42 lakh farmers eligible for loan waivers, this is a significant burden on the state’s finances.
Additionally, the Congress has promised to give Rs 15,000 to farmers and Rs 12,000 to farm workers per acre annually under the “Rythu Bharosa” scheme. This is a step up from the BRS government’s Rythu Bandhu scheme, which provided Rs 10,000 per acre annually. The BRS government spent Rs 72,000 crore on this scheme over the past five and a half years, benefiting 70 lakh farmers. If Congress were to implement its version of the scheme, it would require close to Rs 1 lakh crore over the next five years.
Another costly promise is the Mahalakshmi Scheme, which offers a monthly allowance of Rs 2,500 to women, subsidized gas cylinders at Rs 500, and free bus travel for women. This scheme is expected to cost Rs 18,000 crore per year. Combined with the Rythu Bharosa and the Gruha Jyothi scheme (which promises free electricity up to 200 units for Below Poverty Line (BPL) families), the estimated annual expenditure of these schemes rises to Rs 55,000 crore.
In total, these welfare promises present an enormous challenge for Telangana’s budget. According to the 2023-24 budget estimates, the state’s total revenue is pegged at Rs 2.16 lakh crore, with revenue expenditure at Rs 2.12 lakh crore. These numbers reveal little room for additional spending, let alone funding new welfare schemes without incurring further debt.
Revanth Reddy had hoped for financial assistance from the Central Government to implement his party’s welfare schemes. However, Union Finance Minister Nirmala Sitharaman has made it clear that the Centre will only provide funds based on the established devolution formula and will not support reckless promises made by political parties during elections. This has left Revanth and his government frustrated, with the Chief Minister openly expressing his dissatisfaction with the Centre’s approach.
In a recent incident, a video of Revanth Reddy using offensive language against Prime Minister Narendra Modi went viral on social media. This outburst, along with his aggressive stance towards the Central Government, mirrors the frustrations previously expressed by his predecessor, KCR. However, such confrontational tactics are unlikely to yield financial benefits for Telangana and may only serve to isolate the state further from Central support.
What is even more distressing is the Revanth Reddy government’s proposal for a foreign jaunt for journalists. His office released a long list of journalists from various media houses for a proposed study visit to Seoul, supposedly to learn about the country’s ‘riverfront’ initiatives. This trip was linked to the government’s potential revival of the Musi River, but the entire proposition is reprehensible. It appears to be an attempt to bribe or appease journalists, making a mockery of governance. Moreover, the Chief Minister’s Office (CMO) unabashedly directed the Hyderabad Metropolitan Development Authority (HMDA) to cover all expenses for the journalists, including their travel, stay, and other costs.
Meanwhile, despite his lofty promises, Revanth Reddy’s political standing seems to be declining. Reports suggest that some of his cabinet colleagues are dissatisfied with his aggressive stance, and his government’s failure to respond swiftly to sensitive issues—such as attacks on Hindu temples—has alienated sections of the electorate. Videos of women publicly criticizing the Chief Minister have gone viral, further reflecting growing discontent among the public.
Revanth Reddy’s leadership faces significant challenges. His grand promises—while popular during the election campaign—are now being met with skepticism due to the lack of clear budgetary provisions. Telangana’s large debt burden, combined with the high costs of the welfare schemes, raises serious doubts about the viability of his economic plans. As political analysts point out, Revanth’s aggressive style and combative rhetoric may not be enough to overcome the structural financial issues facing the state. Unless his government finds a way to balance populist promises with fiscal responsibility, the path ahead looks increasingly uncertain for Telangana’s new Chief Minister.
