Telangana total debt at Rs 8 lakh crore as of Dec 2025

Telangana’s total outstanding debt, including liabilities of state entities and government guarantees, stood at Rs 8 lakh crore as of December 2025, according to the Socio-Economic Outlook 2026 released by the Government of Telangana.The report highlighted that between December 2023—when the Indian National Congress assumed power in the state—and December 2025, total borrowings by the state and its entities amounted to Rs 3,19,179 crore. During the same period, repayments of principal and interest stood at Rs3,04,202 crore.
This indicates that a significant portion of fresh borrowings was utilised towards servicing existing debt, reflecting the burden of legacy liabilities accumulated prior to December 2023. The report noted that the rise in outstanding debt must be viewed in the context of substantial interest obligations, ongoing principal repayments, and the need to balance fiscal consolidation with welfare and development spending.Of the total repayments, Rs1.90 lakh crore was towards principal and Rs1.14 lakh crore towards interest, underscoring the pressure of debt servicing on the state’s finances.
The government described the current fiscal situation as a “transitional phase” marked by consolidation and reprioritisation of public expenditure. It emphasised the need to anchor future fiscal strategy in medium-term sustainability while continuing to support growth and development objectives.Despite elevated debt levels, Telangana’s economic indicators remained robust. The state’s Gross State Domestic Product (GSDP) for 2025-26, as per provisional estimates, is projected at Rs17.82 lakh crore, reflecting a growth rate of 10.7%, significantly higher than the national growth rate of 8.0% estimated by the Ministry of Statistics and Programme Implementation.The growth was largely driven by the services sector, including IT, trade, transport, and communication.Telangana’s per capita income for 2025-26 is estimated at Rs4.19 lakh, nearly double the national average of Rs2.20 lakh, with a growth rate of 10.2%, indicating relatively stronger income levels and economic performance.