Telangana borrows ₹12,000 crore from RBI this month

HYDERABAD: The Telangana government is set to raise another ₹5,000 crore through the Reserve Bank of India (RBI) on September 23. This comes after it mobilised ₹7,000 crore earlier this month through the auction of security bonds.

With this, the state will have borrowed ₹12,000 crore in September alone from the open market via RBI.

State debt reaches ₹41,400 crore in six months

In its budget, the government projected borrowings of ₹64,539 crore for 2025–26. Of this, ₹29,400 crore was raised in the first five months. Adding the current month’s borrowings, the state’s debt has reached ₹41,400 crore in just six months — over 65% of the annual target.

In 2023–24, Telangana borrowed ₹49,618 crore, while in 2024–25 it raised ₹56,940 crore — ₹7,000 crore higher than the previous year. This year, with ₹41,400 crore already taken in half a year, economists expect borrowings to touch at least ₹70,000 crore. That would mean an increase of ₹14,000 crore compared with last year.

Experts say this year-on-year rise in debt is putting pressure on the treasury. “Repayments are becoming more difficult, but borrowings remain unavoidable for the government’s survival,” officials in the finance department said.