The Telangana government is being cautious about borrowing money from the open market. Initially, it planned to raise ₹30,000 crore by selling government securities through weekly auctions conducted by the Reserve Bank of India (RBI) in the fourth quarter. However, so far, it has borrowed only ₹13,800 crore.
According to the RBI’s borrowing schedule, Telangana was expected to take part in all weekly auctions in the last quarter of the financial year. But the government has now decided to skip the auction on March 18. This leaves only one more chance, on March 25, to raise additional funds before the financial year ends.
This change in borrowing strategy comes as Telangana’s total debt has already gone beyond the initial budget estimates. Provisional data submitted to the Comptroller and Auditor General of India (CAG) shows that by the end of January, the state had borrowed ₹58,586 crore. By March 11, this number had increased by another ₹8,000 crore, bringing the total borrowings to around ₹68,000 crore. This is nearly ₹19,000 crore more than the ₹49,255 crore projected in the budget for the current year.
When asked about the reason for borrowing less than planned, government officials did not provide a clear answer. A senior official simply said, “No particular reason. Just being prudent.”
The government’s cautious approach comes at a time when concerns about debt sustainability and financial management are growing. Telangana has usually depended on market borrowings to fund infrastructure projects and welfare programs. This latest decision suggests an effort to balance development with financial discipline. It remains to be seen whether this is a temporary adjustment or a long-term policy change.
