This story is from September 16, 2019

State following economic models of US, China: Telangana CM

Chief minister K Chandrashekar Rao on Sunday said that his government is following the economic model of countries like the USA, China, Japan and countries in the European Union, which have among the highest loan liabilities in the world but are also major achievers. He asked the opposition members not to curse their own state.
State following economic models of US, China: Telangana CM
A video grab of CM KCR in the assembly on Sunday
HYDERABAD: Chief minister K Chandrashekar Rao on Sunday said that his government is following the economic model of countries like the USA, China, Japan and countries in the European Union, which have among the highest loan liabilities in the world but are also major achievers. He asked the opposition members not to curse their own state.
Replying during the budget debate in the assembly, KCR advised the opposition to not make ignorant comments on loans and the liability burden of the state.

“In terms of loan volume, US is the top country with high number of loans. Japan has the highest loan percentage in the world and they still do well. It is very important to know what to invest in with the loans we take,” he said.
CM said that Telangana has also proved to be a “prudent” state and can raise the loans in terms of bonds. “We got a very good response for Telangana bonds even with repayment schedule of 15 to 20 years,” KCR said. He informed the house that Telangana has sent Rs 2.70 lakh crore as tax collection to the Centre and in return got Rs 31,000 crore as allocation to the central sponsored schemes, so far.
He further said that if any change in liabilities percentage limit to be maintained in expected GDP under FRBM Act is made then the Centre will be in bigger trouble than financially healthy states like Telangana. “Our liabilities to the percentage of GDP is just 23%, but the Centre has liabilities of about 45%. We have to wait and watch on this,” he said.
KCR said that due to economic recession the country has registered just five per cent growth rate this year. “Telangana has been achieving a growth rate of more than 21 per cent every year. But economic recession has hit many sectors. With the help of an able financial advisor like GR Reddy we prepared budget with foresight,” he said.
Pointing out the concerns of experts and industrialists on the economic recession, he said that someone like Subramanian Swamy, who is from BJP, is also worried. “Industrialists like Ratan Tata and Anand Mahindra also said slowdown will continue for three years. Mahindra had set up tractor unit in Telangana. They were to expand with another Rs 1,100 crore, but they backed off due to recession” KCR said.
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