Telangana avails Rs 49,440 crore loans in 2023-24, highest in last five years

The highest debt percentage against the budget estimates was 137.5 per cent, recorded in 2020-21 when Covid-19 pandemic derailed the world economy.

Hyderabad: Telangana witnessed a significant surge in its debt for the financial year 2023-24, marking the highest borrowing in a single fiscal over the past five financial years. The State secured Rs 49,440 crore in this period, which is around 129 per cent of the budget estimates, the second highest percentage in the last five years.

The highest debt percentage against the budget estimates was 137.5 per cent, recorded in 2020-21 when Covid-19 pandemic derailed the world economy.

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In 2019-20, the State initially estimated borrowings at Rs 24,081 crore, but actual debt reached Rs 29,902 crore, which was 124 per cent of the projected amount. Similarly, the borrowings were estimated at Rs 33,191 crore 2020-21, but the actual figure soared to Rs 45,638 crore, equating to 137.5 per cent of the budget estimate. The officials stated that the borrowings soared due to economic crisis caused by the Covid-19 pandemic and subsequent lockdown in 2020-21.

In the next two financial years, the percentage of market borrowings availed by Telangana saw a decline when compared to the budget estimates. The state projected Rs 45,509 crore in borrowings for 2021-22, with actuals slightly higher at Rs 47,690 crore, or 104.8 per cent of the budget estimates. In 2022-23, Telangana estimated borrowings at Rs 52,167 crore but managed to keep actual debt to Rs 32,119 crore, just 61.6 per cent of the budgeted figure.

According to the provisional reports submitted by the State government to the Comptroller and Auditor General for auditing the budget accounts for 2023-24, the State estimated Rs 38,234 crore in borrowings and other liabilities, but ended up with Rs 49,440 crore in debt which is 129 per cent of the budget estimate. The borrowings were estimated at Rs 36,536 crore when the previous BRS government stepped down in the State in December of 2023.

However, fresh borrowings amounting to around Rs 12,905 crore were availed within four months from December 2023 to March 2024, since the new Congress government took charge in the State.

Ironically, the Congress which criticised the previous BRS government for increasing debts, decided to rely more on the market borrowings for fulfilling its promises in its budget for the year 2024-25, surpassing loans availed in a single financial year over the last 10 years. Of the total Rs 2.75 lakh crore budget for the financial year 2024-25, the State government proposed to mobilise a whopping Rs 59,625 crore, over 20 per cent of the financial requirement through open market loans. The government also proposed to obtain another Rs 5,000 crore through loans from the Central government.

During the first quarter of the current financial year of 2024-25 from April to June, the State government submitted an indent to raise Rs 16,000 crore through auction of securities. Of this, the government had already raised around Rs 6,500 crore and is expected to raise another Rs 4,000 crore during this month.