The Telangana Assembly witnessed heated exchanges on Tuesday, December 17, as Bharat Rashtra Samithi (BRS) MLA T Harish Rao and deputy chief minister Bhatti Vikramarka sparred over the loans accumulated during the BRS’s ten-year rule and the Congress’s eleven-month tenure. Allegations and counter-allegations flew thick and fast, with both sides presenting contrasting figures and questioning each other’s financial management.
Bharat Rashtra Samithi (BRS) MLA T Harish Rao initiated the debate by asking, “How much loans were taken by the Congress government during its eleven-month rule?” deputy chief minister Bhatti Vikramarka responded, stating, “The government has obtained Rs 52,118 crore loan under the Fiscal Responsibility and Budget Management (FRBM) Act by furnishing guarantees from December 2024 till November 30, 2025.”
He added, “Through various corporations and special purpose vehicles (SPV), the state government has drawn loans amounting to Rs 61,991.14 crore, and Rs 10,099 crore through FRBM loans without guarantees between December 2024 and November 2025.”
Harish Rao countered, “Including Rs 3,000 crore loans obtained in December 2025, the total FRBM (with guarantees) amounts to around Rs 54,277 crore. Combined with other loans secured, the total debt accumulated through loans in the last year is Rs 1,27,208 crore.”
“At this rate, one can understand that the state government is certain to take Rs 6,36,040 crore as loans in five years,” he observed.
Claims and counterclaims over BRS debts
Harish Rao further claimed, “The total amount of loans taken by the BRS government in 10 years was Rs 4,17,496 crore and not Rs 7 lakh crore as alleged by the Congress.” He requested a discussion on the white paper released by Congress on the BRS government’s debts during the current winter session.
Welcoming the discussion, Bhatti clarified, “The state government has made debt repayments amounting to Rs 66,000 crore (Rs 6,400 crore per month) for the loans taken during the BRS government, including principal and interest repayments.”
Harish Rao disputed these figures, saying, “As per the CAG report, the monthly interest was Rs 2,100 crore, and according to the RBI reports, it was Rs 2,900 crore (only interest excluding principal amount).”
Bhatti also claimed that the BRS government left Rs 40,000 crore worth of unpaid bills. “The Congress government has paid Rs 14,000 crore of these bills and reduced the pending amount to Rs 28,000 crore after coming to power.”
“Without taking any bank guarantees, you took loans and left all the paddy lying with the rice millers. We recovered Rs 11,000 crore, auctioned the paddy to gain revenues for the government, and streamlined the paddy procurement,” he added.
Unpaid bills of BRS and accusations of mismanagement
Bhatti further alleged that the BRS government did not pay Rs 18,000 crore to energy distribution companies (Discoms), Rs 3,000 crore to industries, and failed to pay hostel bills for residential schools.
“Instead, they (the BRS) cleared the bills of big contractors on time, even including escalated costs.”
“Because you didn’t pay the hostel bills, the contractors supplied rotten vegetables and eggs to the children, causing them to fall sick. That is why we increased the mess charges by 40 percent and cosmetic charges by 200 percent,” he remarked.
Harish Rao disputed these claims, stating, “The BRS government paid Rs 65,000 crore to Discoms in 10 years.”
Bhatti retorted, “Every year, free electricity to farmers requires the state government to pay between Rs 10,000 to Rs 11,000 crore to Discoms. If Rs 65,000 crore was paid in 10 years, that means Rs 40,000 crore is still pending.”
BJP alleged Congress taking loans exceeding FRBM limits
Bharatiya Janata Party (BJP) floor leader A Maheshwar Reddy questioned, “Why is the state government taking loans exceeding the FRBM’s limits? Why is it trying to mortgage 400 acres of government land in Raidurgam through Telangana Industrial Infrastructure Corporation (TGIIC)?”
He added, “Mercantile banks were identified for these loans, and the state government is giving 2-3 percent commission to these banks for securing the loans.”
“The state government is not crossing the FRBM’s limits and is trying to stay below them. Ten years of destruction cannot be rectified in one year. In our first year, we had to borrow a little more. At least we didn’t give away the state’s wealth like BRS did, by leasing the outer ring road toll collection to a company for 30 years,” Bhatti clarified.
