Telangana's government is facing increasing financial strain, with its borrowing in the first quarter of 2025-26 reaching an alarming 37.5 percent of the state's annual borrowing limit. Despite modest growth in tax receipts, non-tax revenues continue to lag, and the state is facing a widening fiscal deficit.
Telangana’s debt under the Congress regime has breached Rs 2 lakh crore in 19 months, with Rs 1.66 lakh crore borrowed between December 2023 and March 2025. Experts warn of long-term fiscal stress due to a rising share of off-budget borrowings
