Loans, Salaries Eat Away Rs 2.68 Lakh Crore From Telangana Coffers

Hyderabad: Since taking office in December 2023, the Congress government has spent Rs 1,59,213 crore across nine major sectors. But a much larger expenditure has been on committed liabilities — Rs 1.15 lakh crore on loan repayments and interest and Rs 1.37 lakh crore on salaries and pensions. Together, these account for Rs 2.53 lakh crore, highlighting the mounting pressure on state finances, according to data from the finance department.

The figures obtained from the finance department highlight the growing pressure on the state’s finances, where committed liabilities continue to dominate over development-oriented spending.

In 2023-24, the BRS was in power for two-thirds of the year until November. The Congress handled finances for only four months, from December to March, when it allocated Rs 24,643 crore to debt servicing. This trend intensified in subsequent years. The Congress government spent Rs 66,374 crore in 2024-25 and Rs 46,431 crore in the current financial year up to September 22, 2025 towards debt servicing.

On the salaries and pensions front, the Congress government spent Rs 19,315 crore in its initial four months in 2023-24, Rs 64,367 crore in 2024-25, and Rs 32,303 crore in the first half of 2025-26.

Finance officials admitted the increasing burden was unavoidable, noting that no state government could cut back on either repayment of loans or payments to its employees.

A retired IAS officer, who held a key role in the finance department during the BRS regime, said the liabilities stemmed from long-term loans, some with repayment periods stretching up to 30 years. He pointed out that the state is currently repaying debts accumulated over the last two to three decades.

He said that even if the government stopped borrowing immediately, the effect on reducing liabilities would only be visible after at least a decade. “Loans are an unavoidable instrument for governments, and stopping them is impractical given the growing expenditure needs,” he remarked.

The officer also underlined that salaries and pensions represent another inflexible component of expenditure. The governments cannot downsize the workforce or deny benefits such as pay revisions and dearness allowances. With each revision, the salary bill grows further, creating a permanent upward trend.

He observed that the only area where governments could exercise some discretion was in limiting welfare schemes and subsidies, though in the present political climate, this option was rarely feasible as all parties competed to outdo one another with populist measures.

Massive spend

Welfare spend totals Rs 1,59,213 crore in nine major sectors.

Repayments, salaries claim Rs 2.53 lakh crore

What the government spent on

Rs 1.37 lakh cr.: Salaries and pensions.

Rs 1.15 lakh cr.: Loan repayments and interest

Rs 66,040 cr.: Agriculture, including free power to farmers

Rs 38,492 cr.: Cheyutha pensions, Mahalakshmi bus scheme, other welfare measures

Rs 14,754 cr.: Irrigation

Rs 5,785 cr.: Education

Rs 4,067 cr.: Energy sector,

Rs 6,464 cr.: Medical and health

Rs 9,512 cr.: Municipal administration

Rs 9,110 cr.: Panchayat raj and rural development

Rs 4,539 cr.: Transport, roads and buildings.