Telangana CM seeks ₹4,000 crore loans for salaries

Telangana Chief Minister Revanth Reddy announced on Monday that his government is facing a cash crunch. He mentioned that the state is taking loans of ₹4,000 crore from the Reserve Bank of India each month to pay employee salaries. This has become necessary due to the government’s high debt and other financial challenges. During a discussion in the state legislative council, Reddy compared the state's situation to individuals in villages who take out personal loans for emergencies. He emphasized that the government struggles to make salary payments on time. Reddy appealed to state employees to understand the financial strain and to postpone their demands for dearness allowance (DA) increases. He assured employees that the government would be transparent about its finances. He encouraged them to participate in discussions about spending decisions. Moreover, Reddy acknowledged the employees' right to ask for DA but stressed that the government cannot meet these demands right now. He compared the state's financial issues to a person on a strict diet when unwell, suggesting that they should also defer demands during this tough period. Former minister KT Rama Rao criticized Reddy for admitting that the state's revenue has decreased over the past year, calling it a humiliation for the state government.