Telangana borrowings set to exceed annual target by December

Telangana's market borrowings are expected to exceed the annual target of Rs 58,458.71 crore by December, with proposed third-quarter borrowings taking the total to Rs 59,400 crore. Having already utilised nearly 80 per cent of its annual borrowing limit in the first two quarters, the State is likely to raise additional funds in the January-March quarter.

Hyderabad: The market borrowings of Telangana are set to cross the annual target of Rs 58,458.71 crore by December. The proposed third-quarter borrowing would take the total to Rs 59,400 crore, exceeding the annual target by about Rs 941 crore.

The RBI on Friday released the indicative calendar for market borrowings by States and Union Territories for the third quarter, estimating total borrowings of Rs 3.61 lakh crore during the period. The State government has proposed to raise another Rs 13,000 crore through State securities auctions. 

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Telangana has already raised Rs 46,400 crore in the first two quarters of 2026-27, accounting for nearly 80 per cent of its annual borrowing target even before the financial year reached its halfway mark.

With the latest proposal, the State’s borrowings through RBI auctions during 2026-27 would reach Rs 48,900 crore. The figure includes Rs 18,900 crore raised in the April-June quarter and Rs 27,500 crore in July-September, besides the proposed borrowing of Rs 2,500 crore on October 7.

Officials admitted that the government will need to resort to further borrowings in the January-March quarter. Based on the previous year’s pattern, financial observers estimated that another Rs 10,000 crore to Rs 15,000 crore could be raised in the final quarter. 

The State government has proposed total gross borrowing of Rs 79,984 crore including market borrowings, Central borrowings and borrowings through other sources. The officials said under the FRBM norms, the State has room to borrow further by adjusting the loan components.

 

Market borrowings for September-December

October — Rs 4,500 crore

November — Rs 4,500 crore

December — Rs 4,000 crore