State Government To Raise Rs 12,000 Cr From Market In Q2
A file photo of the Reserve Bank of India building, which will conduct tranche-wise auctions to facilitate Telangana’s ₹12,000 crore market borrowing plan for Q2 FY26.
Hyderabad: The state government has proposed to raise Rs 12,000 crore from the market during the second quarter of the 2025-26 fiscal (July-September), according to an indent placed with the Reserve Bank of India (RBI) for auctioning state development loans. This move follows a significant borrowing spree in the first quarter, where the government raised Rs 17,400 crore against the planned Rs 14,000 crore.
The additional borrowing in the first quarter was primarily to fund the Rythu Bharosa scheme, for which Rs 9,000 crore was mobilised and disbursed in nine days in June. The RBI facilitated the borrowing through three separate auctions — Rs 1,500 crore on June 3, Rs 3,000 crore on June 10 and Rs 4,000 crore on June 17 — bringing the total borrowing in June to Rs 8,500 crore.
Initially, the indicative calendar for April to June had pegged borrowing at Rs 14,000 crore, with Rs 2,000 crore each in April and Rs 5,000 crore each in May and June. Actual borrowings surpassed the estimates due to the urgency of implementing Rythu Bharosa and other welfare schemes.
For the second quarter, the borrowing plan includes Rs 4,500 crore in July, Rs 3,500 crore in August and Rs 4,000 crore in September. The proposed schedule outlines tranche-wise auctions — Rs 1,500 crore on July 1, followed by Rs 1,000 crore each on July 15, 22 and 29.
While Rs 1,500 crore is planned to be raised on August 12, Rs 1,000 crore will be raised on August 19 and 26. Another Rs 1,000 crore will be raised each on September 9, 16, 23 and 30.
The state government has set a target of raising Rs 64,539 crore through open market borrowings in the 2025-26 Budget, marking an increase of over Rs 7,500 crore compared to Rs 56,940 crore borrowed in 2024-25.
