Telangana Presents Hefty Budget Amid Rising Debt Woes

The Telangana government unveiled a Rs 2.91 lakh crore budget for 2024-25. The state's rising debt, now at Rs 6.71 lakh crore, raises concerns about fiscal sustainability. Major allocations include Rs 72,659 crore for agriculture and Rs 10,000 crore for Hyderabad's development. Revenue and fiscal deficit figures highlight the need for fiscal reforms.

The Telangana government on Thursday presented a substantial budget of Rs 2.91 lakh crore for the financial year 2024-25, with projected total revenue set at Rs 2.21 lakh crore and capital expenditure pegged at Rs 33,487 crore.

Over the last decade, the state accrued an overall debt of Rs 6.71 lakh crore, according to Deputy Chief Minister and Finance Ministry In-charge Mallu Bhatti Vikramarka, who tabled the budget in the assembly. The total projected revenue includes Open Market Loans amounting to over Rs 57,000 crore.

The significant rise in debt has been attributed to a heavy reliance on borrowings, raising questions about the state's fiscal sustainability. Bhatti warned that without stringent fiscal reforms, Telangana's economic health remains at risk.

(With inputs from agencies.)