Telangana's public debt to reach ₹5.62 lakh crore by 2027
Telangana's public debt is on track to reach ₹5.62 lakh crore by March 2027, rising from ₹5.03 lakh crore the previous year.
The state plans to borrow another ₹60,000 crore, mostly through open market loans and some central funds, to cover its needs, according to the latest budget documents.
Borrowing exceeds initial targets
Telangana has already borrowed more than planned this year, hitting ₹69,148 crore by January, well above its target.
A substantial portion was raised through Reserve Bank of India auctions (State Development Loans), and the additional borrowings were used to meet fiscal and capital expenditure commitments.
Even so, interest payments have jumped to over ₹24,000 crore.
The good news? Projected public debt outstanding would be 29% of GSDP by the end of FY 2026-27 (below the 30% threshold), showing that while borrowing is high, it's being managed carefully for now.