Congress Govt in Telangana crosses half-year borrowing limit in less than five months
Telangana Congress government has borrowed over 59% of its annual target in under five months. Experts warn this early borrowing surge could limit financial flexibility amid concerns over lack of new projects
Hyderabad: In a stark indication of the State’s growing fiscal strain, the Congress government in Telangana has crossed the halfway mark of its annual market borrowing target in less than four and a half months of the financial year. With the latest market borrowing on Tuesday, the total market borrowings from RBI during this fiscal have reached Rs.31,900 crore, which is over 59 per cent of the Rs.54,009 crore projected in the State budget for the entire year.
The Revanth Reddy-led administration secured another Rs 1,000 crore loan this week by participating in the Reserve Bank of India’s (RBI) security bond auction. Borrowed for a 35-year term at an interest rate of 7.19 per cent, the funds add to the mounting debt pile.
According to RBI data, the State borrowed Rs.17,400 crore in the first quarter of 2024-25 alone. In the second quarter, the government sought approval for Rs 12,000 crore in fresh loans, but had raised Rs 14,500 crore as of August 11, including Rs 8,500 crore in July and Rs 6,000 crore in August so far, bringing the total borrowings to Rs 31,900 crore.
Fiscal experts warned that such aggressive early-year borrowing could constrain the government’s financial flexibility later in the year, particularly if revenues continue to lag behind targets. The steep borrowing spree continues amid criticism from opposition parties that the Congress government is prioritising debt-funded spending without a clear economic growth strategy and also without commissioning any new project.
