Hyderabad: Grok AI, the generative artificial intelligence chatbot developed by Elon Musk’s xAI, has assessed Telangana’s financial situation, noting that the state’s debt has “ballooned” over the years.
When asked if Telangana is debt-ridden, the chatbot provided a balanced response, stating: “Its fiscal situation is challenging, but it’s not yet at a crisis point compared to some other Indian states with higher debt-GSDP ratios. Whether Telangana is ‘debt-ridden’ depends on whether you view the debt as disproportionate to its economic potential or as a manageable investment in growth.”
In terms of figures, the chatbot referred to a white paper released by the govt in 2023, which highlighted the state’s escalating debt. According to the chatbot, as of the 2023-24 fiscal year, Telangana’s total debt stood at 6.71 lakh crore, a sharp rise from 72,658 crore in 2014.
The chatbot acknowledged the substantial growth in Telangana’s debt since its formation, raising concerns about the state’s financial health. This increase reflects significant borrowing, particularly for major projects like Kaleshwaram and Mission Bhagiratha. However, these projects have not generated enough revenue or assets to offset the rising debt.
The chatbot also provided insights from the debt-to-gross state domestic product ratio, which has increased from 15.7% in 2015-16 to 27.8% in 2023-24, approaching the 29.5% limit set by the 15th Finance Commission for 2024-25. While the ratio remains within permissible limits, it indicates a growing dependence on debt relative to the state’s economic output.
Additionally, debt servicing has become a significant burden, with interest payments and principal repayments squeezing fiscal flexibility.
In a separate inquiry, the chatbot also addressed controversial remarks made by BJP MLA T Raja Singh. It also mentioned the suspension of BRS MLA G Jagadish Reddy, who had served as a minister and was suspended for the entire budget session, though it did not specify the reasons for his suspension.
