Hyderabad: BJP MLA A Maheshwar Reddy described the State government’s budget for the 2025-26 financial year as alarming, even to the government itself, given the state’s high debt levels.

Speaking in the State Legislative Assembly during the ongoing budget session on Thursday, he stated that Chief Minister A Revanth Reddy has openly acknowledged the state’s dire financial situation, which now requires taking loans just to pay employee salaries.

“There is growing concern among the public that the promises made by this government and the welfare schemes are in jeopardy,” he said. He pointed out that the Mahalaxmi scheme has not yet been implemented, and there’s no indication of when the government will distribute the promised Rs 2,500 to women.

Furthermore, he noted that two commitments had been made to farmers regarding insurance and financial assistance; unfortunately, the budget lacks allocations for these needs, as well as for agricultural labourers. The promised Indiramma houses have not yet been delivered, and there are no funds earmarked for youth development or the Rs 5 lakh education assurance cards for students.

The budget also fails to address issues such as unemployment allowances. “Yet, this government has renamed Abhayahastam in two consecutive budgets,” he added. He criticised the state’s financial state, echoing the Chief Minister’s statement, “Upar Sherwani – Andar Pareshani.” He argued that making promises indiscriminately and then providing excuses for not fulfilling them after coming to power is unacceptable. He suggested that the government should be dissolved and called for seeking a fresh mandate from the people.

Maheshwar Reddy further mentioned that the state government claims to generate a revenue of Rs 18,500 crore every month. Of this, Rs 6,500 crore goes towards employee salaries and pensions. Another Rs 6,500 crore is allocated for debt servicing on loans taken by the previous government. This leaves only Rs 5,500 crore for other expenditures, which fall under the FRBM limits.

“It is surprising that the Chief Minister allocates funds for schemes and development programs haphazardly,” he said. He pointed to the previous BRS government as the primary culprit for the state’s current debt crisis, accusing them of fostering anarchy and economic devastation over the last ten years.

However, he also criticised the Congress government for following the same path, making them the second culprit in this situation. Maheshwar Reddy stated that the current government has borrowed Rs 1,63,000 crore since taking office. “Is the state advancing in development, or is it simply accumulating more debt?” he questioned.

He demanded that the state government produce a white paper detailing pending dues and how much has been cleared to date. He also inquired about the status of pending bills for small contractors, retired employees, Aarogyasree reimbursements, fee reimbursements, payments made to large contractors, and the number of outstanding payments still due.