The Telangana government has amassed an unprecedented debt of ₹1,52,918 crore in just 15 months, raising concerns about the state’s financial stability. The latest ₹3,000 crore market borrowing on Tuesday adds to the mounting liabilities, sparking serious questions about fiscal management.
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Breakdown of Telangana’s Debt
As per government disclosures, RBI data, and CAG reports, the total debt comprises:
- ₹69,827 crore under the Fiscal Responsibility and Budget Management (FRBM) limits
- ₹83,091 crore through non-FRBM loans, including:
- ₹62,000 crore borrowed by corporations and Special Purpose Vehicles (SPVs) with government guarantees
- ₹10,099.7 crore taken without guarantees
- ₹10,000 crore loan from HUDCO (Housing and Urban Development Corporation)
Between December 2023 and November 2024, the state borrowed ₹1,24,209 crore, with an additional ₹28,709 crore taken between December 2024 and March 2025.
Opaque Financial Strategy Raises Concerns
Economists have raised alarms over the Congress government’s borrowing pattern, highlighting a lack of transparency in loan utilization. Despite accumulating debt at an alarming rate, Telangana has little to show in terms of infrastructure development, employment generation, or welfare initiatives.
Debt May Cross ₹1.65 Lakh Crore
Sources suggest that undisclosed non-FRBM loans amounting to ₹10,000-₹15,000 crore may push the total debt beyond ₹1.65 lakh crore by the end of this fiscal year. Experts caution that if this trend continues, Telangana could face a severe financial crisis, placing a heavy burden on future generations.
As the state prepares for the upcoming budget session, will the Congress government provide clarity on its debt strategy, or will the borrowing spree continue unchecked?