Union Minister G. Kishan Reddy said that Centre disbursed ₹12 lakh crore to Telangana over the past 12 years through Central schemes and capital investments.

Union Minister G. Kishan Reddy said that Centre disbursed ₹12 lakh crore to Telangana over the past 12 years through Central schemes and capital investments.
| Photo Credit: M. VENKAT RAO

Union Minister for Coal & Mines, G. Kishan Reddy, on Tuesday (March 3, 2026) urged the Telangana Government to release a comprehensive ‘White Paper’ on the State’s financial position before the (2026-27) budget session begins from March 16.

₹10,000 crore interest free loans in past 6 years

In a letter to Chief Minister A. Revanth Reddy, also shared with the media, the Union Minister said the Centre under Prime Minister Narendra Modi had extended significant financial support to Telangana over the years. He cited the Special Assistance to States for Capital Investment (SASCI) scheme, under which the State received ₹10,000 crore in the past six years as interest‑free loans with a 50‑year repayment window.

Breakup of Central funds

These funds, he said, were meant for drainage networks, road widening, railway expansion, bridges and flyovers, hospitals, educational institutions, tourism infrastructure, radial roads between the Outer Ring Road (ORR) and Regional Ring Road (RRR), and river development projects. Specific allocations included ₹200 crore for MMTS Phase‑II, ₹114 crore for the Manoharabad–Kothapalli railway line, ₹315 crore for Smart Cities, ₹674 crore for PMGSY, ₹200 crore for radial roads, ₹110 crore for the Siddipet bypass, ₹388 crore for Young India Residential Schools, and ₹300 crore for hostel construction.

SASCI funds utilised effectively, but became dependent on interest-free loans

Mr. Kishan Reddy acknowledged that Telangana had utilised the SASCI scheme “effectively,” but claimed the State Government had become “dependent” on these interest‑free loans for major programmes. He further stated that nearly ₹12 lakh crore was disbursed to Telangana over the past 12 years through Central schemes and capital investments.

₹12 lakh crore in 12 years through Central schemes and capital investments

This included ₹2.5 lakh crore in tax devolution, ₹1.85 lakh crore for road projects, over ₹36,000 crore for railway works, nearly ₹40,000 crore under MGNREGA, ₹50,000 crore worth of Public Distribution System (PDS) rice, over ₹40,000 crore to local bodies, and substantial spending on power, education, sports and healthcare infrastructure.

Farmers, he added, benefited from over ₹14,000 crore under PM‑KISAN, ₹80,000 crore in fertiliser subsidy, nearly ₹2 lakh crore paid as Minimum Support Price (MSP) for paddy procurement, and ₹60,000 crore for cotton procurement. Loans amounting to ₹10 lakh crore had been extended through Central financial institutions.

The Secunderabad MP accused Mr. Revanth Reddy of claiming the State treasury was empty despite having offered “₹1,000 crore to the Congress High Command.” Telangana, formed in 2014 with surplus finances, had seen “no visible progress” during the 10 years of Bharat Rashtra Samithi (BRS) rule or in the past 27 months under Congress, he alleged, stating that rising per‑capita debt and dependence on borrowings even for routine payments reflected “deep fiscal stress”.

He urged the Government to present the “true financial facts” before the public through a comprehensive ‘White Paper’.


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