Hyderabad, June 29, 2025 – Telangana market borrowing 12000 Crores for Telangana Infrastructure Development In a significant financial move, the Telangana government has announced plans to raise through market borrowings during the second quarter of the financial year 2025–26. The funds will be mobilized in 11 tranches between July and September, according to official sources from the Reserve Bank of India (RBI) and the state finance department.
Telangana Market Borrowing Plan
Market borrowings, primarily through the sale of government securities (G-Secs), are a standard tool used by states to meet their developmental and budgetary requirements. Telangana, like many other Indian states, relies on these borrowings to fund large-scale infrastructure projects, social welfare schemes, and essential services without excessively depending on central grants.
Key reasons for this borrowing initiative include:
Funding ongoing irrigation, infrastructure, and health projects
Ensuring liquidity for welfare programs like Dalit Bandhu, Rythu Bandhu, and Aasara pensions
Meeting fiscal targets while managing increased post-pandemic expenditure
Borrowing Schedule and Tranches
As per the RBI’s provisional borrowing calendar:
- The ₹12,000 crore will be raised via State Development Loans (SDLs)
- The funds will be raised in 11 installments, starting from July 2025 and concluding by September-end
- The borrowing will be aligned with Telangana’s fiscal responsibility targets and the state’s budgetary projections
This borrowing is part of a larger ₹2.44 lakh crore borrowing plan by all Indian states for Q2 FY2025–26, indicating a countrywide push for developmental financing.
What Does It Mean for Telangana?
While increased borrowing raises concerns about debt, experts say the move reflects Telangana’s proactive fiscal management, especially given its ambitious development agenda. Here’s what to expect:
Boost for Public Infrastructure: Funds will accelerate roads, hospitals, education, and irrigation projects crucial for the state’s growth.
Job Creation: Large infrastructure investments often stimulate employment opportunities across various sectors.
Economic Stimulus: Fresh capital injection may help counter economic slowdowns and bolster key industries in Telangana.
Debt Management Challenges: Telangana’s outstanding liabilities are projected to cross ₹5 lakh crore by March 2026, making fiscal discipline critical.
A Look at Telangana’s Financial Health
Telangana Financial Strategy has consistently maintained a high revenue generation rate, primarily from GST collections, excise, and property registrations. However, rising welfare spending and capital investments necessitate careful borrowing strategies.
As per the 2025–26 Telangana Economy 2025 budget:
- Revenue Expenditure: ₹2.15 lakh crore
- Capital Expenditure: ₹45,000 crore
- Fiscal Deficit Target: 3% of GSDP
The ₹12,000 crore borrowing aligns with these projections, ensuring that the state can fund development without breaching fiscal norms.
Telangana’s decision to raise ₹12,000 crore via market borrowings reflects both the state’s developmental ambitions and its reliance on structured financial mechanisms. While borrowing is essential for progress, fiscal prudence will be key to sustaining Telangana’s economic momentum in the coming years.