Former Finance Minister Harish Rao Condemns Congress Budget as 'Fictional' Amid Telangana's Economic Downturn
In a scathing critique of the Congress-led government's fiscal management, former finance minister T Harish Rao has declared that Telangana has plunged from a revenue surplus state into negative growth. Participating in the legislative debate on the 2026-27 budget presented by the Revanth Reddy administration, the BRS deputy leader asserted that the state's revenue growth, per capita income, and budget figures reveal a troubling disconnect between promises and reality.
Budget Estimates Versus Actuals: A Growing Chasm
Harish Rao emphasized that the budget projections have become mere "fiction" while expenditure represents a "glaring truth." He provided detailed comparisons to substantiate his claims:
- For the 2024-25 fiscal year, the budget estimate was ₹2.90 lakh crore, but the revised estimates showed actuals at only ₹2.66 lakh crore, resulting in a staggering gap of approximately ₹59,231 crore.
- In the 2025-26 fiscal year, according to Comptroller and Auditor General (CAG) data up to January, the discrepancy between estimates and actual budget expenditure reached ₹54,000 crore.
- Looking ahead to 2026-27, even with an assumed growth rate of 10.7%, Harish Rao projected that the proposed budget of ₹3.24 lakh crore would likely only achieve between ₹2.75 lakh crore and ₹2.80 lakh crore in reality.
Welfare Schemes Suffer Due to Budget Cuts
The BRS leader accused the Congress government of severely undermining welfare initiatives through substantial budget reductions. He highlighted that the implementation of key schemes has become questionable due to these cuts.
Schemes facing significant cuts include:
- Rythu Bharosa (farmer support scheme)
- Crop bonuses
- Loan waivers
- Indiramma's support
- Rajiv Yuva Vikas
- Kalyana Lakshmi
Furthermore, Harish Rao noted that several programs have been completely halted, such as KCR Kits, Dalit Bandhu, sheep distribution, Nutrition Kits, and Bathukamma sarees. He challenged the Congress government to disclose a timeline for fulfilling all promises made during the 2023 assembly elections.
Declining Economic Indicators Under Congress Rule
Harish Rao contrasted the economic performance under the previous BRS regime with the current administration. He stated that during the nine-year BRS rule, the Gross State Domestic Product (GSDP) growth averaged 12%, but it has now fallen to 10.7% under Congress governance. Correspondingly, per capita income growth has also declined.
The former minister presented stark revenue figures to illustrate the downturn:
- Revenue receipts grew from ₹51,400 crore in 2014-15 to ₹1,69,293 crore in 2023-24 under BRS, marking a 23% growth rate.
- Under Congress rule, revenue has decreased by ₹1,489 crore, representing a negative growth of 1%.
He also pointed out reductions in State Own Tax Revenues (SOTR), including declines in registration and stamps tax, vehicle tax, excise duties, and other levies.
Mounting Debt and Fiscal Concerns
Harish Rao warned of escalating debt burdens, noting that the government is resorting to substantial borrowing. The budget itself acknowledges ₹67,339 crore in open market borrowings. Based on current trends showing ₹88,840 crore, he projected that borrowing could reach ₹2 lakh crore by the end of the year, further straining Telangana's fiscal health.
In conclusion, Harish Rao labeled the Congress government as a "failure" in economic management, urging transparency and accountability in budgetary processes to address the state's growing financial challenges.
