Chief Minister A Revanth Reddy made some candid confessions and described Telangana's financial situation as grim. He urged government staff to abandon strike intentions and work with the state to deal with what he called a “financial minefield” left behind by the previous Bharat Rashtra Samithi (BRS) administration.

While speaking at the Telangana Police Real Heroes Zee Awards in Hyderabad on Monday, Reddy acknowledged the growing unrest among employee unions over delayed wages and pending allowances. He spoke directly about the state’s finances. “Even if you cut me into pieces, I can’t raise more than Rs 18,500 crore per month,” he said. He warned that a Rs 4,000 crore gap between revenue and expenditure was pushing Telangana toward bankruptcy.

He added that no one was willing to lend money to the state. “Not a single paisa is being given. No one believes us anymore. They’re looking at Telangana representatives like we’re thieves. When we go to Delhi, no one even gives us an appointment, thinking we would steal their slippers, if called,” he said. He blamed the previous regime for this reputational damage.

He said the BRS government left the Congress with over Rs 8,500 crore in unpaid retirement benefits and massive arrears in the power and infrastructure sectors. “They declared free electricity, but didn’t pay the coal bills for Singareni Collieries. Contractors are owed thousands of crores. They borrowed at 11% interest. Can there be anything more evil?” he asked.

Reddy invited union leaders to work with the government. “Walk with me to steer the State toward development. If you have concerns, speak to the finance minister or Secretary. We are willing to be transparent,” he said.

Amid threats of a strike, Reddy made an emotional plea to employee unions. He urged them not to fall prey to political manipulation by the Opposition. “Why are the employees annoyed? Is your fight against the people of Telangana? Do they want to go on a strike because salaries are not paid on the first of the month, unlike before?” he asked.

He assured them that the government was not hiding anything. “This government is yours. I will reveal all the accounts to you. You decide what is to be given or put on hold,” he recently told employees in the Legislative Council. He acknowledged that the demand for Dearness Allowance (DA) was legitimate, but he asked workers not to insist on it given the current difficult financial situation.

Reddy also pointed out that, for the first time in a decade, state employees were receiving salaries on time, despite the stress. “As the Chief Minister, I am entitled to fly by special aircraft, but I sometimes travel economy. I never publicised this. We are practicing fiscal discipline,” he said.

He warned against political moves that could destabilise the government. “Tell me—should we stop welfare schemes? Should we raise petrol prices to Rs 200? That’s not right. Protests and hunger strikes at this stage could lead to a complete collapse of the government machinery,” he said.

In a veiled reference to former Chief Minister K Chandrashekar Rao, Reddy said, “The person who caused this destruction is enjoying comfortably in the farmhouse,” while the current government is trying to rebuild the financial system. “We’ve taken Rs 1.58 lakh crore in loans and already repaid Rs 1.54 lakh crore. We’re trying to rebuild the system. Please bear with us,” he said.

He reminded employees that the government is a “united family” and urged them not to damage its honour. “Telangana society will not tolerate the irresponsible action of some leaders and those who are trying to target the government using the unions,” he said.

This was not the first time Reddy spoke about the state’s strained finances. At the India Today Conclave in March, he admitted that his view of the financial situation changed after he took office. “After I sat on the Chief Minister’s chair, I got to know the truth,” he said. He explained that out of Rs 18,500 crore earned each month, Rs 6,500 crore goes toward salaries and pensions, and another Rs 6,500 crore goes to debt repayment. “That means Rs 13,000 crore is gone before the 10th of every month. I am left with only Rs 5,000 crore for welfare and development. I have no money for capital expenditure,” he said.

Later, in the Legislative Council, he again admitted that paying salaries on the first of every month was becoming difficult. Even at that time, he urged state employees to understand the situation and assured them of full transparency regarding the financial condition.