Telangana’s market borrowings cross 50% of limit set for the fiscal with two more quarters to go  

The State government is fast approaching the limit set for open market borrowings by the Union Finance Ministry during the financial year 2025-26.

The government has submitted an indent for market borrowing of ₹1,000 crore through auction of securities to be conducted by the Reserve Bank of India on Tuesday. This would take the total borrowings to ₹14,500 crore during the quarter.

The State has raised ₹13,500 crore in five instalments starting with ₹1,500 crore on July 1, ₹1,000 crore on July 8, ₹2,500 crore on July 15, ₹3,500 crore on July 29, and another ₹5,000 crore on August 1. Fresh borrowing of ₹1,000 crore would take the total borrowings to ₹14,500 crore, with more than 1.5 months left for the completion of the second quarter of the current fiscal.

The borrowing comes in the backdrop of the ₹54,009 crore limit set for the State by the Union Finance Ministry for the fiscal. This is against the ₹69,539 crore, including the open market borrowings of ₹64,539 crore projected by the State government in the Budget estimates indicating the steep cut imposed by the Centre.

Coupled with the market borrowings of ₹20,266 crore in the April–June quarter, the State had already crossed the halfway mark of the limit set for the current fiscal with two more quarters to go. The State had to rely on market borrowings in view of the less than expected total revenue receipts of $57,499 crore at the end of the first quarter, just 20.19% of the ₹2.84 lakh crore estimated for the current fiscal, according to the provisional figures audited by the CAG at the end of the April-June quarter. The revenue also includes ₹20,266 crore under the head borrowings and other liabilities.