Telangana To Raise Rs 9,000 Crore via Loans To Pay Rythu Bharosa

Hyderabad: The state government has decided to raise Rs 9,000 crore through an auction of bonds for paying the Rythu Bharosa monetary assistance to farmers after the moral code of conduct for municipal polls ends next week.

The Reserve Bank of India will conduct the auction on Tuesday on behalf of the state government for four bonds — two worth Rs 2,000 crore each and two worth Rs 2,500 crore each.

Earlier, Chief Minister A. Revanth Reddy had said that the government would transfer Rythu Bharosa assistance of Rs 6,000 per acre to farmers for the ongoing yasangi (rabi) season soon after the municipal polls.

According to official data, the state has already mobilised Rs 66,068 crore through RBI bond auctions during the first three quarters of the 2025-26 financial year, from April to December. The government had proposed to borrow Rs 10,600 crore in the fourth and final quarter (January–March), taking the total planned borrowing for the year to Rs 76,668 crore.

Of the proposed Rs 10,600 crore for the last quarter, the state government raised Rs 3,500 crore in January, pushing the total borrowings so far to Rs 69,568 crore. This is higher than the projected borrowing of Rs 64,539 crore provided for in the Budget Estimates for 2025-26.

The proposed borrowing of Rs 9,000 crore on February 11 would exceed the total indent of Rs 10,600 crore placed for the entire last quarter. With around one-and-a-half months remaining for the current financial year to end on March 31, it remains to be seen how much additional borrowing the Centre will permit the state to undertake beyond the FRBM limits.