The Telangana Government has dismissed all claims that trifurcating the Greater Hyderabad Municipal Corporation (GHMC) is a move to raise fresh loans. Industries and IT Minister D. Sridhar Babu said there are no administrative or financial reasons behind the split. He denied charges by the main opposition, Bharat Rashtra Samithi (BRS), that outside consultants or bankers would be hired to arrange new loans for the GHMC. "In fact, the indiscriminate borrowing by the previous BRS Government has mandated restructuring of debts," the Minister said on January 5, 2026, in the Legislative Assembly. The GHMC currently owes ₹4,717.81 crore as of December. According to Babu, the present government has not taken any new debt in the past year. The earlier BRS government borrowed ₹6,401 crore between 2018 and 2023 at high interest rates. The current government is working with banks and other institutions to reduce the interest burden through loan restructuring. "We are trying to bring in discipline in the departments for prudent fiscal management," he added. The Minister also criticized the BRS for boycotting Assembly sessions and pointed out their absence during a key presentation on Krishna waters by the ruling party. He condemned their comments against Assembly Speaker G. Prasad Kumar and urged the Chair to take action against such behavior.