Synopsis: Telangana has leaned heavily on off-budget borrowings raised by state corporations such as power utilities, irrigation boards, and housing and development agencies. These loans do not appear directly in the budget but are backed by government guarantees, making them de facto liabilities of the state.

Telangana’s finances are under increasing strain, with the state’s debt burden rising faster than its revenue growth.

Official accounts and budget documents show that the state’s outstanding liabilities are expected to touch ₹5.46 lakh crore by March 2026, equal to 28.1 percent of the Gross State Domestic Product (GSDP).

But when off-budget borrowings —loans raised by state corporations with government guarantees—are taken into account, the cumulative debt climbs closer to ₹6.6–

See Full Page