Telangana’s 2026 Outlook Puts Outstanding Debt at Rs 8,00,805 Crore
The state’s survey cites heavy interest outgo on legacy borrowings as the reason the debt stock stayed elevated despite large repayments.
Overview
- From December 2023 to December 2025, the state and its entities raised Rs 3.19 lakh crore and repaid Rs 3.04 lakh crore.
- Repayments comprised Rs 1.90 lakh crore in principal and Rs 1.14 lakh crore in interest, with interest forming more than one-third of the servicing burden.
- FRBM loans remain the largest component at Rs 4.95 lakh crore, with fresh FRBM borrowing of Rs 1.46 lakh crore and repayments of Rs 97,010 crore over the period.
- Government‑guaranteed loans serviced by the state declined as repayments of Rs 70,732 crore far exceeded fresh borrowings of Rs 6,162 crore; SPV‑serviced guarantees stood at Rs 1.59 lakh crore and non‑guaranteed corporate borrowings at Rs 59,851 crore.
- The Outlook frames the repayment push as maintaining fiscal credibility without curbing welfare and development spending, even as interest costs keep overall liabilities high.