Congress govt raises Rs 4.14 lakh crore loans in just 30 months

The Congress government in Telangana has raised nearly Rs.4.14 lakh crore in loans within 30 months, triggering concerns over rising debt and off-budget borrowings. Economists and Opposition parties warned about growing fiscal pressure and increasing repayment burden on the State exchequer.

Hyderabad: Even as it completes its half-term next month, the Congress government in Telangana has raised loans amounting to nearly Rs.4.14 lakh crore within just 30 months between December 2023 and May 2026. The Revanth Reddy government has triggered serious concerns over the State’s rapidly expanding debt burden and growing dependence on off-budget borrowings, as it is inching closer to surpassing the 10-year borrowing of the previous BRS government within a short span.

Official data reveals that the Congress regime raised around Rs.1.94 lakh crore through FRBM-linked borrowings and another Rs.2.05 lakh crore through non-FRBM or off-budget loans routed via corporations and special purpose vehicles (SPVs). The government also took over the Hyderabad Metro Rail project recently and ended up with another Rs.15,000 crore loan.

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At the end of March 2026, Telangana’s outstanding FRBM-linked public debt stood at Rs.5.03 lakh crore, while non-FRBM liabilities and guarantees touched Rs.3.01 lakh crore. Budget estimates for 2026-27 projected the FRBM loans climbing further to Rs.5.62 lakh crore.

During April and May 2026 alone, the Congress government borrowed another Rs.12,900 crore through FRBM loans and approximately Rs.14,000 crore through various corporations under the non-FRBM route.

In comparison, at the end of the 10-year BRS regime, the total outstanding liabilities of Telangana were around Rs.3.6 lakh crore in FRBM loans, which also included nearly Rs.69,000 crore inherited from the erstwhile united Andhra Pradesh at the time of Telangana’s formation. The BRS government also raised around Rs.1.1 lakh crore through non-FRBM borrowings over the decade.

The borrowing pattern indicates that the Congress government has already raised more than half the FRBM loans accumulated during the entire decade-long BRS rule within just two-and-a-half years. More significantly, the off-budget and corporation-linked borrowings under the Congress regime are nearly double the total non-FRBM loans raised during the previous government’s tenure.

However, the most alarming aspect is the growing debt-to-GSDP ratio. Public debt, which stood at 27 per cent of GSDP in 2023-24, is estimated to increase to 28 per cent in 2025-26 and further to 29 per cent in 2026-27. Economists warn that such a steep rise in FRBM borrowings indicates increasing fiscal pressure and shrinking financial flexibility for the State government.

The rapid pace of borrowing under the Congress government has triggered criticism from the Opposition, which accused the administration of pushing Telangana into a debt trap while failing to generate corresponding capital assets or sustained economic growth. Economists warned that the increasing reliance on non-FRBM borrowings would ultimately place additional repayment pressure on the State exchequer in the coming years.