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The Telangana Government has crossed the ceiling set for public debt under the Fiscal Responsibility and Budget Management (FRBM) regulations if the details released by the Comptroller and Auditor General of India (CAG) are any indication.
In the report on the Finance Accounts for 2024-25, the CAG said that the State’s outstanding public debt and other liabilities stand at ₹4.59 lakh crore, which includes internal debt, market borrowings and loans from Central Government and other financial institutions. As per the medium term fiscal policy, the revised estimate of the total outstanding liabilities as percentage of the GSDP was 32.8% for the year.
“However, the total liability does not include off budget borrowings, government guaranteed loans raised by SPVs or corporation or entities but being serviced by the government amounting to ₹1.17 lakh crore as on February 28, 2025,” the report said. The government furnished the balance of off-budget borrowing, which was 100% risk weighted outstanding guarantee amount.
“The ratio of the outstanding public debt and other liabilities at ₹5,62 lakh crore, including the off-budget borrowings of ₹1.17 lakh crore but excluding back to back loans by the Central Government in lieu of shortfall in GST compensation of ₹1,940 crore worked out to 34.29% of the GSDP”.
With the GSDP for 2024-25 pegged at ₹16.4 lakh crore, the outstanding accounted to 34.29% against the ceiling of 32.8%. The report said that the internal debt, including market loans (long term loans having a currency of more than 12 months) raised in the open market was ₹56,209 crore. The Government raised 58 loans bearing rate of interest varying from 7.07% to 7.48%, redeemable between years 2035 and 2055.
Simultaneously, repayment of 14 market loans to the extent of ₹13,117 crore with interest rates varying from 5.82% to 9.4% of Telangana and Andhra Pradesh government stock 2024 and 2025 was made during the period.
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