Telangana avails Rs 49,440 crore loans in 2023-24 - Highest in Last 5 Years

For the fiscal year 2023–2024, telangana had a substantial increase in its debt—the most borrowing in a single fiscal year in the previous five years. During this time, the State was able to acquire Rs 49,440 crore, or around 12.9 percent of the budget estimates—the second-highest proportion during the previous five years. The greatest debt percentage against the projected budget was 137.5%, which was reported in 2020–21 when the global economy was completely collapsed by the COVID-19 epidemic.

The State had forecast borrowings of Rs 24,081 crore for 2019–20; however, real debt amounted to Rs 29,902 crore, or 124% of the predicted amount. In a similar vein, borrowings were projected to be Rs 33,191 crore for 2020–21, but the real amount shot up to Rs 45,638 crore, or 137.5 percent of the projected budget. According to the administration, the COVID-19 epidemic and the ensuing lockdown in 2020–21 produced an economic catastrophe, which is why borrowings increased.

When compared to the budget expectations, Telangana's share of market borrowings decreased in the next two fiscal years. For 2021–2022, the state estimated borrowings of Rs 45,509 crore; actual borrowings were slightly higher, at Rs 47,690 crore, or 104.8% of the budget predictions. telangana projected borrowings of Rs 52,167 crore for 2022–2023; however, the state was able to contain real debt to Rs 32,119 crore or barely 61.6% of the projected amount.

The State estimated that it would incur borrowings and other liabilities of Rs 38,234 crore, but ultimately ended up with debt of Rs 49,440 crore, or 1½ percent of the budget estimate, according to the provisional reports that the State government submitted to the Comptroller and Auditor General for the audit of the budget accounts for 2023–2024. When the last BRS administration of the State resigned in december 2023, the projected debt was Rs 36,536 crore.

However, once the new congress administration entered office in the State, new borrowings of almost Rs 12,905 crore were obtained in just four months, from december 2023 to march 2024.

Paradoxically, the congress, which had condemned the previous BRS administration for piling up debt, chose in its budget for 2024–25 to rely more on market borrowings to meet its commitments, surpassing the number of loans taken out in a single fiscal year in the preceding ten years. The State government intended to raise an astounding Rs 59,625 crore, or more than 20% of the total budget of Rs 2.75 lakh crore for the fiscal year 2024–2025, using open market borrowing. Additionally, the administration suggested borrowing an additional Rs 5,000 crore from the Central government.

To generate Rs 16,000 crore through securities auctions, the State government submitted an indent during the first quarter of the current fiscal year, which runs from april to June. Of this, the government has already raised over Rs 6,500 crore, and this month, it expects to raise an additional Rs 4,000 crore.

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