Centre Approves Rs.14,000 Cr Loan for TG from Apr-Jun
The Reserve Bank of India (RBI) will conduct auctions of state government bonds to facilitate the borrowings
Hyderabad: The Centre has granted permission to the Telangana government to raise Rs.14,000 crore through open market borrowings in the first quarter (April-June) of the new financial year 2025-26. However, this is Rs.2,000 crore less than the Rs.16,000 crore approved for the same period in the previous fiscal year 2024-25.
The Reserve Bank of India (RBI) will conduct auctions of state government bonds to facilitate the borrowings. As per the approved schedule, Telangana will raise Rs.4,000 crore in April, Rs.5,000 crore in May, and Rs.5,000 crore in June. The borrowing schedule includes Rs.2,000 crore on April 15, Rs.2,000 crore on April 29, Rs.2,000 crore on May 6, Rs.2,000 crore on May 20, Rs.1,000 crore on May 27, Rs.2,000 crore on June 3, Rs.2,000 crore on June 17 and Rs.1,000 crore on June 24.
In its 2025-26 state budget presented in the Legislative Assembly on March 19, the state government proposed to raise Rs.64,539 crore through open market borrowings. This would require an average borrowing of Rs.16,134 crore per quarter. However, the Centre’s approval for only Rs.14,000 crore in the first quarter raises questions about whether the state will be allowed to borrow its full projected amount or face further cuts.
During the recently concluded Budget Session of the Legislative Assembly, Chief Minister Revanth Reddy revealed that Telangana's total debt currently stands at Rs.7,38,707 crore. He attributed this high debt burden to the financial mismanagement of the previous BRS government, which he claimed had taken massive loans over a decade from June 2014 to December 2023.
Revanth Reddy stated that at the time of Telangana's formation in June 2014, the state inherited a debt of Rs.90,161 crore from undivided Andhra Pradesh. However, under the BRS government, the debt escalated to Rs.8,19,151 crore by December 7, 2023, when the Congress government assumed office.
He explained that the Congress government borrowed Rs.1.58 lakh crore in 15 months between December 2023 and February 2025, of which Rs.1.53 lakh crore was utilised to repay principal and interest on loans taken by the previous BRS government . The actual new debt incurred by the Congress government stands at Rs.4,682 crore, Revanth Reddy said.
