Wed Sep 24 12:51:14 UTC 2025: **Summary:**

Telangana’s government is rapidly approaching its borrowing limit set by the Union Finance Ministry for the fiscal year 2025-26. Having already borrowed ₹46,000 crore out of the allowed ₹54,009 crore, the state is seeking ways to restructure existing high-interest loans with longer-tenure, lower-interest loans. The central government has reportedly approved this restructuring, potentially saving the state exchequer thousands of crores. State officials are optimistic that the borrowing limit may be increased later in the financial year.

**News Article:**

**Telangana Nears Borrowing Limit, Seeks Loan Restructuring for Financial Relief**

**Hyderabad, September 24, 2025** – The Telangana government is rapidly approaching its borrowing limit for the fiscal year 2025-26, raising concerns about the state’s financial position. The state has already borrowed approximately ₹46,000 crore of the ₹54,009 crore limit set by the Union Finance Ministry, leaving only around ₹8,000 crore available for the remainder of the fiscal year.

A significant portion of these borrowings is being used to restructure existing high-interest loans obtained by the previous government. The state is aiming to replace these with longer-term loans at lower interest rates, as evidenced by the recent ₹5,000 crore borrowing at a 7.44% interest rate with a tenure of over 20 years.

Sources within the government indicate that the Union Finance Ministry has approved this loan restructuring plan, potentially saving the state thousands of crores in interest payments. Principal Finance Secretary Sandeep Kumar Sultania reportedly held discussions with the Union Finance Ministry, outlining the state’s financial situation and seeking cooperation.

While the current borrowing limit is a concern, senior state officials remain optimistic that the Union government may increase the limit later in the financial year. “We will get more,” a senior Finance Department official told *The Hindu*, suggesting that further discussions with the central government are ongoing.

The state government hopes to reap the benefits of the loan restructuring exercise soon, easing the burden on the state exchequer and ensuring the continued funding of its various programs and initiatives. The situation remains closely watched as Telangana navigates its fiscal challenges in the coming months.

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