Telangana Debt burden will go up to Rs 3.89 lakh crore in current financial year.

Telangana State Government has estimated the total debt burden will increase to Rs 3.80 lakh crore by the end of current financial year.

The White Paper report on Telangana State Finances disclosed startling revelations on increased debt burden from year of 2014 to till the date.

The White paper said that Telangana state started with an outstanding debt of Rs. 72,658 crores in FY 2014-15, which increased at an annual average rate of 24.5% between FY 2014-15 and FY 2022-23, reaching an amount of Rs. 3,52,061 crores by FY 2022-23(RE).

Further, as per budget estimates for FY 2023-24, the debt is estimated to increase to Rs. 3,89,673 crores.

The debt-to-GSDP ratio of the State was one of the lowest in the country in FY 2015-16 at 15.7%. By FY 2023-24, the same ratio went up to 27.8%; it has almost doubled in 8 years. The debt-to-GSDP ratio has had an overall increasingtrend over the years, averaging 21.5% over the FY 2014-22 period. Further, in FY 2020-21 and FY 2021-22, the state failed to contain the debt-to-GSDP ratio within the 25% ceiling recommended under the Fiscal Responsibility and Budget Management (FRBM) Act.