Telangana’s Borrowings Exceed 50% of Annual Fiscal Limit with Two Quarters Remaining

Quick Summary:

• The Union Finance ministry has set a borrowing limit of ₹54,009 crore for the State for the 2025-26 financial year.
• The State government has submitted a request to borrow ₹1,000 crore via an auction of securities by the Reserve Bank of India (RBI).
• This fresh borrowing would raise total borrowings in the current quarter to ₹14,500 crore.
• Borrowing breakdown over five instalments so far:

– ₹1,500 crore on July 1
– ₹1,000 crore on July 8
– ₹2,500 crore on July 15
– ₹3,500 crore on July 29
– Another instalment of ₹5,000 crore on August 1.

• Including borrowings from April-June (₹20,266 crores), total market debt already breaches halfway point of fiscal limit with six months remaining in FY2025-26.
• Lower-than-projected revenue receipts at $57,499 crores (about only 20% realization of estimated budgeted revenue) have added pressure to rely heavily on market borrowing.

indian Opinion analysis:

The heavy reliance on market borrowings within just weeks into the second fiscal quarter underscores deeper challenges facing India’s public finance landscape. A critical factor appears to be shortfall in anticipated revenue collections juxtaposed vs sustained enterprising state investment-flows выраж_expression stressability..

Carrying….