Telangana’s total debt stands at Rs 8 lakh crore as on December 2025: Govt report

Hyderabad: Telangana’s total debt, including that of its entities and government guarantees, stood at Rs 8 lakh crore as of December 2025, according to the Socio-Economic Outlook 2026 released by the state government.

The state government said that from December 2023, when Congress assumed power, to the same month in 2025, the total borrowings of the state and its entities amounted to Rs 3,19,179 crore, with repayments (principal and interest) of Rs 3,04,202 crore.

The repayments and loans raised by the Congress government during its nearly two and a half years in office indicate that a large share of the borrowings during that period was used to service existing debt, due to the substantial debt inherited from the pre-December 2023 period, the report said.

“While total outstanding debt stood at Rs 8,00,805 cr as on 31 December 2025, the increase in outstanding liabilities needs to be interpreted in the context of large and unavoidable interest payments on account of the massive legacy debt... substantial principal repayments undertaken alongside interest servicing and the requirement to balance debt servicing with continued welfare and developmental spending,” it said.

During the period under discussion, the state and its entities raised fresh loans amounting to Rs 3.19 lakh crore. Over the same period, repayments amounting to Rs 3.04 lakh crore were made towards principal and interest, comprising Rs 1.90 lakh crore towards principal and Rs 1.14 lakh crore towards interest.

Telangana's fiscal performance reflects a transitional phase of consolidation and reprioritisation of public expenditure. Going forward, the state’s public finance strategy should be anchored in medium-term fiscal sustainability while supporting growth and development objectives, the Outlook said.

Telangana’s Gross State Domestic Product (GSDP) for 2025-26 (provisional advance estimates) at current prices is estimated at Rs 17.82 lakh crore, growing at 10.7 per cent, significantly higher than the national growth rate of 8.0 per cent as per the First Advance Estimates compiled by the Ministry of Statistics and Programme Implementation(MoSPI).

It reflects strong service-oriented growth, driven by sectors such as IT, trade, transport and communication.

The State’s Per Capita Income (PCI) for 2025- 26 (PAE) reached Rs 4.19 lakh as against the national average of Rs 2.20 lakh, with a growth rate of 10.2 per cent, demonstrating higher income levels and relatively better economic performance, the report added.