Telangana plans ₹18,900 crore Q1 borrowing
HYDERABAD: The Reserve Bank of India (RBI) has outlined Telangana’s borrowing plan for the April–June quarter, projecting a total of ₹18,900 crore in market loans.
The state government, which depends on market borrowings to fund welfare schemes and development works, plans to raise an average of ₹6,300 crore per month in the first quarter. This marks an increase from the earlier monthly average of around ₹4,000 crore.
RBI schedule details six borrowing phases till June
According to the RBI’s borrowing calendar, the state began raising funds in the first week of April. The process will continue in six tranches until June 16. It starts with ₹3,900 crore on April 7.
The government plans to mobilise ₹5,900 crore through bonds with maturities exceeding 25 years for long-term needs. Another ₹6,000 crore will be raised through bonds with tenures of 16–20 years. Additional funds will be secured through bonds with maturities ranging from six to 15 years.
These borrowings will be used to meet essential expenditure, including implementation of guarantees, infrastructure development, and payment of salaries and pensions. A significant share is expected to go towards employee wages and pensions.
Benchmark issuance strategy aims to reduce interest burden
Telangana has been selected among nine states for the RBI’s pilot ‘Benchmark Issuance Strategy’ (BIS), aimed at improving transparency in debt raising.
Under this system, bonds are issued with standardised maturities such as five, 10, 15, 20, and 25 years instead of varied tenures. This improves liquidity in the market by ensuring the availability of similar bonds in larger volumes.
The move is expected to help the state secure loans at lower interest rates, as investors gain confidence in the ease of buying and selling such bonds.
Across the country, states and Union Territories together plan to borrow about ₹2.54 lakh crore during the period, with Telangana accounting for a significant share among southern states. Andhra Pradesh is also raising funds under the same system.
Economists said the state should channel these borrowings into productive sectors to support long-term economic growth, rather than allowing them to remain as liabilities.
