Decode politics: Why Telangana is seeing a white paper war

Why has the white paper turned into a flashpoint between the newly elected Congress government and the previous BRS regime?

What does the white paper say?

According to the white paper tabled in the Assembly, Telangana’s debt rose drastically from Rs 72,658 crore in 2014-15 to Rs 6,71,757 crore in 2023. However, the Reserve Bank of India (RBI) pegs the state’s debt at Rs 3.66 lakh crore as of March. “From a revenue surplus state in 2014, Telangana is now riddled with debts due to the previous BRS government’s decisions,’’ the Deputy CM said.

After the formation of the state in the last 10 years, the total debt of the state has gone up to & 6,71,757 crore from 72,658 crore in 2014-15

పదేళ్లలో అప్పు 6,71,757 కోట్లు#Telangana pic.twitter.com/mUA9m3sAvG

— Bhatti Vikramarka Mallu (@BhattiCLP) December 20, 2023

Bhatti claimed that no tangible fiscal assets, which were in proportion to the enormous spending of the BRS government, were created over the last 10 years.

The Congress, citing the white paper, accused the government of overlooking the health and education sectors due to the financial stress on the state. Telangana’s Budget outlay for the two sectors has been the lowest in the country.

The Deputy CM added that 17 Special Purpose Vehicles (SPVs) were created during the BRS regime for corporations and institutions to raise Rs 1.85 lakh crore, but did not have sufficient revenue to service the debt. He pointed out that the Kaleshwaram Lift Irrigation project also has a huge outstanding loan. The white paper states that Rs 97,449 crore was raised for the project, of which Rs 79,287 crore has already been disbursed while the outstanding loan was over Rs 74,500 crore.

Why was the white paper released?

The Congress had focused its campaign on the “huge corruption” of the BRS government and the white paper on the state’s finances is one of the first handful of decisions that the Revanth Reddy government has taken.

In August, at a party meeting, Reddy had said all the decisions taken by the BRS government over the last nine years, especially in the fag end of its tenure, would be reviewed.

As a part of this review, state Irrigation Minister N Uttam Kumar Reddy will make a presentation on the Meddigadda barrage later this week. The minister will also visit the site where one of the pillars had collapsed into the Godavari river following which the then BRS government had been criticised by the National Dam Safety Authority.

According to the white paper tabled in the Assembly, Telangana’s debt rose drastically from Rs 72,658 crore in 2014-15 to Rs 6,71,757 crore in 2023.

How did the BRS respond?

BRS working president K T Rama Rao (KTR) countered the government’s white paper saying the K Chandrashekar Rao (KCR) government was responsible for value creation of Rs 50 lakh crore across the state. “Telangana is a very successful state considering its per capita income, Gross State Domestic Product (GSDP) and wealth creation. The new government is ruining the image of the new state with allegations of debt,” he said and alleged that the Congress was finding excuses not to implement the six guarantees they promised in their manifesto.

Former BRS minister T Harish Rao claimed the white paper was full of errors. “The loans created assets for the state. The Congress is unnecessarily showing the state in poor light,” he said.

Senior BRS leader Dasoju Srravan demanded that the state government release a white paper outlining future development plans and accused it of engaging in divisive politics by tabling misleading white papers. “In the run-up to the Assembly elections, many top Congress leaders like Mallikarjun Kharge, Sonia Gandhi, Rahul Gandhi, Priyanka Gandhi Vadra, Karnataka Chief Minister Siddaramaiah and his Deputy D K Shivakumar made tall promises. We demand that the Congress start implementing them,” he said.

Are more white papers in the offing?

The Revanth Reddy-led government now plans to release a white paper on the power sector after the CM expressed his dissatisfaction with the functioning of the department. According to Reddy, the white paper will also help the Congress implement its promise of round-the-clock power supply to all sections of the state and 200 units of free power.

The idea has been met with criticism from former Telangana energy minister Jagadish Reddy, who said it was only in the state that uninterrupted supply of power was available. “NITI Aayog announced this in its State Energy and Climate Index. This could be achieved only due to timely action of the previous BRS government. We obtained loans, but created more assets. In the process, we also ensured improved power supply to people of all sectors in the state,” he said during a discussion in the Assembly.