Telangana Treading Cautiously on Market Borrowings; It Raised ₹17,400 Crore in First Quarter
Telangana has adopted a measured approach to market borrowings in the first quarter of FY2025, raising ₹17,400 crore between April and June. This cautious borrowing strategy comes amidst increased scrutiny of state-level debt management and central oversight of public finance metrics.
Steady Borrowing Amid Fiscal Prudence
While the ₹17,400 crore borrowing is significant, officials indicate that Telangana is strategically limiting its exposure to debt markets in light of long-term repayment capacity, current revenue flows, and central government borrowing ceilings.
The move is also reflective of balanced fiscal management, ensuring that while infrastructure projects and welfare schemes continue, the state does not fall into unsustainable debt levels.
Key Sectors Backed by the Borrowings
A major portion of the Q1 borrowing has been directed towards:
Irrigation and water infrastructure projects
Public health system strengthening
Rural development and employment schemes
Servicing of existing debt maturities
By channeling funds into productivity-linked sectors, Telangana aims to generate higher returns on capital expenditure while avoiding unproductive fiscal burdens.
Comparison with Previous Years
Compared to the same quarter last year, the borrowing has moderately increased, indicating the state’s need to balance its budget while managing fiscal responsibility. The increase, however, remains well within FRBM (Fiscal Responsibility and Budget Management) limits, highlighting discipline.
Frequently Asked Questions (FAQ)
Q1: How much did Telangana borrow in the first quarter of FY2025?
A1: Telangana raised ₹17,400 crore in market borrowings from April to June 2025.
Q2: Why is Telangana being cautious with its borrowings?
A2: The state is ensuring fiscal stability and sustainability by borrowing only within its capacity, focusing on productive sectors and adhering to central fiscal norms.
Q3: Which sectors are benefiting from these borrowings?
A3: Key sectors include irrigation, healthcare, rural development, and servicing of existing debt.
Q4: How does this borrowing compare to last year?
A4: It represents a moderate increase but stays within acceptable fiscal responsibility parameters.
Q5: What does Vizzve Finance say about this update?
A5: Vizzve Finance reports that the blog is trending on Google and was quickly indexed due to rising interest in state finance dynamics and economic planning in Indian states.
Published on: July 3, 2025
Published by: PAVAN
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