Congress Raises Net Debt of Rs 15,000 in 2 years, refinanced Rs 3.04 lakh crore BRS Loans
Telangana’s debt rises amid heavy repayments, interest burden
Hyderabad: The Congress government in Telangana has raised fresh loans amounting to Rs 3.19 lakh crore in the two years between December 2023 and December 2025, while repaying Rs 3.04 lakh crore towards principal and interest on borrowings incurred during the previous BRS regime, according to the Telangana Socio-Economic Survey 2026.
The report highlighted that interest payments alone accounted for more than one-third of the total debt servicing burden, underlining the growing fiscal pressure from past borrowings of the BRS regime. Of the total repayment of Rs 3,04,202 crore, the principal component stood at Rs 1,90,131 crore, while interest payments accounted for Rs 1,14,071 crore.
Unlike principal repayments, interest payments do not reduce the outstanding debt stock, making them a recurring liability. As a result, despite substantial repayments, the overall debt burden has continued to rise, reflecting structural pressure caused by accumulated interest obligations.
This trend is particularly evident in borrowings under the Fiscal Responsibility and Budget Management (FRBM) framework. The government raised fresh FRBM loans of Rs 1,46,362 crore, while repaying Rs 97,010 crore towards both principal and interest. In contrast, government-guaranteed loans serviced directly by the state saw repayments of Rs 70,732 crore against fresh borrowings of just Rs 6,162 crore, leading to a reduction in that category of Liabilities.
As of December 31, 2025, Telangana’s total outstanding debt stood at Rs 8,00,805 crore. FRBM loans constituted the largest share at Rs 4,95,374 crore. Government-guaranteed loans raised by special purpose vehicles (SPVs) and serviced by the government stood at Rs 86,327 crore, while those serviced by SPVs themselves amounted to Rs 1,59,253 crore. Non-guaranteed loans serviced by corporations accounted for Rs 59,851 crore.
The survey emphasised that the rise in outstanding liabilities must be viewed in the context of heavy legacy debt, substantial interest payments and the need to sustain welfare and development expenditure. It noted that the scale of repayments during the Congress regime reflects a commitment to honouring debt obligations and maintaining fiscal credibility, even as rising interest costs continue to strain public finances.