At the end of march 2023, telangana was one of the five major States with the fewest outstanding obligations in the nation, with around Rs 3.66 lakh crore. This is completely at odds with claims made by the opposition parties, particularly those made by union tourism minister G. Kishan Reddy, who recently claimed that the state owed much than Rs 8 lakh crore in debt, including borrowings from many State-owned enterprises.
Telangana's total outstanding liabilities, including loans taken out by State-owned businesses and public sector organisations, will be roughly Rs 5.17 lakh crore, according to the most recent information provided by the Centre based on reserve bank of india reports. Following the Covid-19-induced economic crisis, the outstanding obligations increased from Rs 1.9 lakh crore in march 2019 to Rs 2.71 lakh crore in march 2021, and subsequently to Rs 3.66 lakh crore by the end of march 2023.

The Centre previously informed the parliament in february that through february 2023, loans taken out by State-owned companies and PSUs from commercial banks were estimated to total about Rs. 1.31 lakh crore, while those taken out from NABARD were roughly Rs. 19,431 crore.

Comparatively, a number of other significant States, particularly those governed by the bjp, have enormous unpaid obligations. Furthermore, telangana does not have the highest outstanding liabilities among the States in south India. By march 2023, tamil Nadu would have the biggest outstanding obligations, totaling Rs 7.53 lakh crore. Following this are Uttar Pradesh, with 7.1 lakh crores, Maharashtra, 6.8 lakh crores, West Bengal, 6.08 lakh crores, Rajasthan, 5.37 lakh crores, Karnataka, 5.35 lakh crores, Andhra Pradesh, 4.42 lakh crores, Gujarat, 4.23 lakh crores, Kerala, 3.9 lakh crores, and Madhya Pradesh, with 3.78 lakh crores.

However, the opposition parties contend that the state's actual indebtedness are significantly higher than the figures provided in the state budget. The Centre itself had estimated the combined debt of the telangana government and State PSUs at Rs 4.33 lakh crore in february of this year. Telangana's outstanding debt will be around Rs 5.17 lakh crore, according to the most recent statistics. However, bjp State leaders, including Kishan Reddy, asserted a few weeks ago that the State's indebtedness had reached Rs 8 lakh crore, which is completely at odds with the information made public by the RBI and the union Finance Ministry.