Telangana: Kaleswaram Lift Irrigation Project debt will be a huge financial burden on Govt in next 14 years: CAG
Telangana is set to have huge financial burden over next 14 years in the form of debt servicing of loans taken for construction of Kaleshwaram Lift Irrigation project: CAG Report
The Comptroller and Auditor General Report stated that the State of Telangana is set to have a huge financial burden over the next 14 years in the form of debt servicing of the loans taken for the construction of the Kaleshwaram Lift Irrigation project.
The multi-stage irrigation project lifts water from the low-lying Godavari River and channelises the water to different projects in the State. Dy Chief Minister and Finance Minister Bhatti Vikramarka tabled the CAG report in the Assembly today. The CAG pegged the future liability on the Kaleshwaram Project towards debt servicing will work out to One lakh 41 thousand crore rupees over the next 14 years.
It further said the State had to finance the revenue deficit from market borrowings as the State registered a revenue deficit. The State government will have to repay two lakh 52 thousand crore rupees as principal and interest on the market borrowings by 2032-33 and this will put significant pressure on the government finances.
The CAG stated that the State borrowed heavily from the Budget for the Kaleshwaram project. It also said the revenue deficit was understated and non-discharge of interest liabilities also impacted the fiscal deficit. The CAG also observed that the State has been persistently trailing in respect of expenditure on the education and health sectors.
