Telugu States to Borrow Fresh Loans Amid Rising Financial Pressures

Hyderabad/Amaravati, July 1:
The Telugu states of Andhra Pradesh and Telangana are set to raise substantial funds once again through loans from the *Reserve Bank of India (RBI). While Telangana plans to borrow **₹1,500 crore, Andhra Pradesh is set to take a larger loan of *₹2,000 crore on July 1.

This borrowing comes as both state governments continue to grapple with budgetary pressures, development commitments, and ongoing welfare schemes.

States Turn to RBI for Fresh Funds

According to official reports, the RBI has approved these loan amounts under the market borrowing program. The borrowed funds are expected to support day-to-day governance, infrastructure, and welfare activities in both states.

Andhra Pradesh, already facing a debt burden, has been consistently borrowing to meet its financial obligations. The fresh ₹2,000 crore loan is part of a broader financial strategy to manage fiscal needs in the new financial quarter.

Meanwhile, *Telangana’s ₹1,500 crore borrowing follows several previous tranches of market loans. The state is navigating a challenging financial period, with increasing pressure to fund projects like *Dalit Bandhu, irrigation schemes, and salaries.

Mounting Debt Concerns

The increasing reliance on loans by both Telugu states has raised concerns among economists and financial analysts. Experts warn that frequent borrowings, if not backed by revenue growth or fiscal discipline, could lead to long-term debt servicing challenges.

However, state officials argue that borrowing within RBI’s limits is well within the legal framework and crucial for maintaining momentum in public welfare and infrastructure programs.

Key Highlights:

  • Andhra Pradesh to borrow ₹2,000 crore from RBI on July 1
  • Telangana to raise ₹1,500 crore on the same day
  • Loans to support welfare programs and development projects
  • Economists express concern over rising debt levels
  • Borrowing approved under RBI’s market borrowing scheme