Hyderabad: The Telangana govt is likely to borrow Rs 14,000 crore in the first quarter (April–June) of the financial year 2025- 26. According to the Reserve Bank of India’s (RBI) indicative calendar of market borrowings submitted by the state government, Telangana proposed to borrow Rs 4,000 crore in April, Rs 5,000 crore in May and Rs 5,000 crore in June. The govt decided to raise the amount in phases.
The Telangana govt proposed to raise Rs 4,000 crore this month in two phases and decided to go for first market borrowings on April 15. However, the govt already raised the amount on April 8. Interestingly, the neighbouring Andhra Pradesh proposed to raise Rs 5,000 crore in one tranche, which is very rare in one phase.
In the budget for the financial year 2025-26, the Telangana govt projected borrowings of Rs 64,539 crore. The burden of debt servicing has become increasingly significant as in the fiscal year 2024-25, the govt pegged the debt servicing expenditure at Rs 17,729 crore. However, by January, the government already incurred expenses exceeding Rs 22,000 crore.
Outstanding liabilities represent the total amount of borrowings at the conclusion of a financial year, including any obligations on the public account. For the fiscal year 2024-25, these liabilities are anticipated to reach 27.38% of the Gross State Domestic Product (GSDP), which is comparable to the revised estimate of 27.45% for 2023-24.
According to the budget document for 2025-26, the outstanding public debt was projected at Rs 3.56 lakh crore for 2022-23 and Rs 4.03 lakh crore for 2023-24. This figure encompasses open market loans, loans from the Central government and autonomous bodies, special securities, as well as reserve funds and deposits. The budget indicates that Rs 30,847.37 crore has been allocated for interest and principal repayments in the fiscal year 2024-25.
