Hyderabad, Dec 15 (IANS): Alleging that Telangana was pushed into a financial mess and crisis by the previous government by raising loans indiscriminately, the new Congress government has said that the greatest challenge before it is to improve financial situation on a war footing.

Governor Tamilisai Soundararajan said on Friday that the entire financial discipline was destroyed under the previous rule.

The new government is working to identify lacunae that took place in financial management, where wasteful expenditure is indulged in, and where financial irregularities took place.

"Without putting a financial burden on the people, we want to bring in financial prudence and offer governance and welfare to the people. This is our government's aim and goal," she said in her address to the joint session of the State Legislature.

Stating that entire financial discipline was destroyed, she said there was no fiscal discipline or financial prudency. "We will place before the people the financial condition of each and every department by releasing white papers and show them the real facts. We will be releasing the whitepapers as part of the transparent government that we promised to the people," she said.

The Governor said that owing to the bad governance of the previous government, the power utilities are in a deep financial crisis with a staggering debt of Rs 81,516 crore.

"They have incurred losses of Rs 50,275 crore. Similarly, the Civil Supplies Corporation has Rs 56,000 crore as debt and Rs 11,000 crore as losses. Each and every department has incurred huge debts. Loans raised indiscriminately from every corporation have pushed the state into a financial mess and crisis," she said.

The Governor also stated that in the last nine and a half years, all the institutions have been destroyed.

"The institutions and organisations that should work democratically have been unfortunately degraded to serve individuals. It will not augur well in a democracy where institutions indulged in individual worship. My government has decided to change this trend and situation. We will restore the core values of the legislature and executive," she said.

She also made it clear that the government has no qualms about taking constructive criticism from the opposition parties.

"Our government will not discriminate with regard to development. In my government, Legislators from any party can seek help and cooperation for the development of their Assembly constituencies. We will usher in transparency in governance and administration. The secretariat will not be a mere decorative symbol. We will respect the constitutional institutions. This is not a feudal rule. We will instill confidence in people that this is real democracy," she added. The new government will try to revive the past glory of Hyderabad.

The Governor noted that Hyderabad is not only a capital for the Telangana state but also a perennial revenue source that generates income for the welfare and development of the poorer sections of society.

Hyderabad got this financial strength because of the previous Congress-led governments, which developed it to reach this goal.

From Information Technology to Metro Rail, Shamshabad International Airport to ORR, and the entire world-class infrastructure was planned and developed during the Congress governments.

"Hyderabad's topography would have undergone a sea change, had the ITIR project announced by the then UPA government in 2013 came into being. My government is now trying to bring back that past glory," she said.

The government has launched an action plan to clean up the Musi river and turn its catchment area into an employment generation zone.

The government's aim is to develop the city in all directions. Stating that the government is committed to decentralising development in Telangana, the government is planning to divide the state into three zones with Hyderabad as the centre.

One zone is Hyderabad City, which is inside the Outer Ring Road (ORR), the second zone is the area between the ORR, and the proposed Regional Ring Road (RR), and the third zone is outside the RRR.

The government will prepare plans accordingly.