Telangana to borrow Rs 4,000 crore, hits new peak

Telangana is poised to reach a record Rs.16,000 crore in market borrowings this September, with another Rs. 4,000 crore auction scheduled on RBI’s e-Kuber platform. Having already exhausted 92% of its annual borrowing limit, the State faces mounting concerns from financial analysts over its fiscal sustainability.

Hyderabad: Telangana is set to hit a new peak in market borrowings this month, with the Congress government preparing to auction another Rs 4,000 crore in securities next week.

The fresh auction, scheduled on the RBI’s e-Kuber platform on September 30, will push the State’s September borrowings to an unprecedented Rs 16,000 crore making it the highest in a single month for the State since its formation.

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With this, the State is left with barely Rs 4,109 crore of borrowing space for the remaining six months of 2025-26, under the annual ceiling of Rs 54,009 crore fixed by the Centre.

The government has already borrowed Rs 49,900 crore in just six months (April–September), amounting to 92% of its permitted annual limit.

Financial analysts have already warned that such aggressive borrowing, against the backdrop of sluggish revenues, risks pushing Telangana into a debt trap. The strain could further tighten fiscal space for welfare schemes and capital projects, raising concerns over how the government will sustain its commitments in the second half of the year.