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The Telangana government has revived efforts to restructure around Rs 25,000 crore in loans to reduce interest costs. While officials expect major savings, financial experts warned that the move could increase long-term debt liabilities and encourage additional borrowings without structural fiscal reforms

Fresh data in Telangana’s Socio-Economic Outlook 2026 contradicted Chief Minister A Revanth Reddy’s claims on debt repayment, with Dasoju Sravan alleging inflated figures and accusing him of misleading the Assembly to target former CM K Chandrashekhar Rao

Chief Minister A Revanth Reddy’s claim that the Bharat Rashtra Samithi left Telangana with Rs 8 lakh crore debt faces contradictions from official data, which shows significantly lower public debt, while highlighting the Congress government’s substantial recent borrowings

Telangana’s finances are increasingly dependent on borrowings, with market loans crossing the budget estimate by over 53 per cent. Data shows a widening gap between revenue generation and expenditure, raising concerns among economists about the sustainability of the State’s financial management.

Facing declining revenues and a heavy debt burden of over Rs 6.85 lakh crore, Telangana is seeking Central approval to restructure Rs 2 lakh crore in loans, alongside exploring low-interest foreign borrowing to fund welfare and development programmes

Telangana borrowed Rs 45,900 crore in six months of 2025-26, reaching 85 per cent of its annual limit, while revenue collection lags. Experts warn of a possible fiscal crisis within three years if corrective measures are not taken

Telangana’s Congress government has borrowed double its planned Q2 target, pushing total debt close to Rs 2.3 lakh crore. Experts warn that aggressive borrowing, off-budget loans, and repayment pressures threaten welfare, salaries, and development priorities

BRS MLC Dasoju Sravan accused CM Revanth Reddy of mortgaging Telangana’s future through reckless borrowings, citing RBI data that the State raised ₹6,000 crore in one day. He said debt had already touched ₹30,669 crore, warning of long-term financial collapse

Lok Sabha data reveals Telangana’s assets grew faster than debt during the BRS decade, countering Congress claims of financial ruin. The current Congress government, however, has accrued Rs 2.17 lakh crore debt in under two years, raising fiscal concerns.

Set to borrow Rs 17,400 cr in first quarter of 2025-26, surpassing budget projections. Despite initial plans for Rs 14,000 cr, the additional borrowings raise concerns about fiscal sustainability and the rising burden of long-term debt

Accuses Congress government of misleading public on debts, blaming previous BRS regime to cover up its inability to fulfil electoral promises

The State debt stands at around Rs.72,500 crore since the Congress came to power, while the market borrowings are at around Rs.32,500 crore in the first two quarters of the current fiscal year.