Wed Mar 19 10:02:21 UTC 2025: ## Telangana’s Public Debt to Exceed ₹5 Lakh Crore by 2025-26

**Hyderabad, March 19, 2025** – Telangana’s public debt is projected to surpass ₹5 lakh crore by the end of the next fiscal year (2025-26), according to the state’s budget documents presented on Wednesday. This represents a significant increase from the current year’s (2024-25) figure.

The state’s open market loans are expected to reach ₹4.07 lakh crore, nearly ₹50,000 crore more than the current year’s ₹3.58 lakh crore. Additional loans from the central government (₹23,719 crore), autonomous bodies (₹11,202 crore), special securities, and other sources are projected to contribute to the overall debt.

While the government claims the outstanding public debt will remain within the limit at 28.1% of the Gross State Domestic Product (GSDP), the rising debt servicing payments are cause for concern. The budget allocates ₹19,370 crore for debt servicing in 2025-26, approximately ₹2,000 crore higher than the current year’s allocation. However, the actual expenditure has consistently exceeded budget estimates in recent years. For instance, while ₹17,729 crore was budgeted for interest payments in 2024-25, over ₹22,000 crore had already been repaid by January 2025. The government has categorized its outstanding guarantees (₹3.01 lakh crore) into three categories based on the nature of the loans and who services them.

The increasing debt burden raises concerns about the strain on Telangana’s finances.

Read More