Mon Jun 23 12:20:35 UTC 2025: **Summary:**

The Telangana government has increased its market borrowings through the Reserve Bank of India (RBI) to ensure sufficient funds are available for the Rythu Bharosa scheme, which provides investment support to farmers. The government has already raised ₹17,400 crore in the current fiscal quarter, exceeding its initially planned ₹14,000 crore. This adjustment in borrowing strategy aims to guarantee timely disbursement of funds under Rythu Bharosa. Despite these efforts, Telangana’s public debt is projected to surpass ₹5 lakh crore by the end of fiscal year 2025-26.

**News Article:**

**Telangana Increases Borrowings to Fund Farmer Investment Scheme**

**HYDERABAD, June 23, 2025** – The Telangana government has ramped up its market borrowings through the Reserve Bank of India (RBI) to secure more than ₹9,000 crore required for crediting funds into farmers’ accounts under the Rythu Bharosa scheme, which provides crucial investment support to the state’s agricultural community.

The government has already raised ₹17,400 crore for the April-June quarter of fiscal year 2025-26, exceeding its initially planned ₹14,000 crore. A significant portion, ₹8,500 crore, was raised in June alone through RBI-conducted auctions of State Government Securities. These actions reflect the government’s commitment to ensuring sufficient funds for timely disbursement under the Rythu Bharosa program.

According to sources, the government had initially outlined plans to raise ₹4,000 crore in April and ₹5,000 crore each in May and June, totaling ₹14,000 crore for the quarter. However, the urgency to provide funds for Rythu Bharosa led to adjustments in the quantum and timing of its market borrowings.

The state government has been facing a tight financial situation and is relying on increased borrowings to meet its financial obligations. Despite efforts to achieve revenue targets, a substantial portion of the revenue is allocated to wages, pensions, and interest payments.

While the increased borrowings are aimed at supporting farmers, Telangana’s public debt is projected to surpass ₹5 lakh crore by the end of fiscal year 2025-26, raising concerns about the state’s long-term financial sustainability.

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