Telangana Govt to raise ₹13,000 cr in third quarter of FY 2026-27

The Telangana Government has proposed to raise ₹13,000 crore from the open market during the third quarter of the current financial year (2026-27) amid apprehensions that it is likely to cross the borrowing limits set by the Union Finance Ministry with one more quarter to go.

The State government, in its indent submitted to the Reserve Bank of India (RBI), indicated that it will raise ₹3,4,500 crore in October, ₹4,500 crore in November and ₹4,000 crore in December through auction of securities. This will take the total borrowings of the current year to ₹59,400 crore as the government has already raised ₹18,900 crore and ₹27,500 crore during the first and second quarters of the current fiscal.

The quantum however is within the limits as the State will be well within its net borrowings limit after the third quarter. The government had proposed gross borrowings of ₹79,984 crore for the fiscal 2026-27 including open market loans and central assistance for capital expenditure. Of this, provision were made for repayment of principal and interest on debts to the tune of ₹23,025 crore pegging the net borrowings limit calculated on the basis of gross borrowings minus debt repayments at ₹56,959 crore which will be the net addition to the State’s debt.

According to the provisional figures, the State raised gross borrowings of ₹32,400 crore till the end of July of which net borrowings are calculated at ₹22,900 crore, indicating that there is space for more borrowings in the last quarter if the government sticks to the indent. The difference amount, according to finance experts, will be used for repaying the old loans and this generally will not come under the regular borrowings.

This is termed as ever greening of the loans akin to farmers taking fresh loans every year with a major chunk of it adjusted to the pending dues. “The outstanding amount will continue to remain as the process involves book adjustments,” an expert said.