Hyderabad: Telangana debt is set to rise further as the state proposed borrowing Rs 13,000 crore through an RBI e-auction. The proposed borrowing covers the October-December quarter of financial year 2026-27.
The Reserve Bank of India released the indicative calendar for market borrowings by states and Union Territories on Friday. The calendar estimated total market borrowings of Rs. 3,60,820 crore during the third quarter.
Telangana had set an annual borrowing target of Rs. 58,458.71 crore for 2026-27. However, the state had already raised Rs. 46,400 crore during the first two quarters of the financial year.
During the April-June quarter, Telangana raised Rs. 18,900 crore through market borrowing. Subsequently, the state raised another Rs. 27,500 crore between July and September.
The first two quarters therefore accounted for almost 80% of the annual borrowing target. Meanwhile, the state proposed another Rs. 13,000 crore for the October-December quarter.
Telangana debt could exceed annual target by December
If the proposed third-quarter borrowing goes ahead, Telangana’s cumulative borrowing would reach Rs. 59,400 crore. That figure would be about Rs. 941 crore above the annual target of Rs. 58,458.71 crore.
The source said the state could cross its annual borrowing target by December itself. It also reported expectations of further borrowing during the January-March quarter.
Financial experts cited in the source estimated that the state could seek another Rs. 10,000 crore to Rs. 15,000 crore during the final quarter. They also expressed concern that borrowing was increasing faster than the state’s income.
The RBI calendar outlined Telangana’s borrowing pattern for the first three quarters. The state raised Rs. 18,900 crore in April-June and Rs. 27,500 crore in July-September.
For October-December, the proposed borrowing stands at Rs. 13,000 crore. As a result, the combined borrowing for the three quarters would reach Rs. 59,400 crore.