“Telangana Budget Raises Debt and Revenue Concerns”

Telangana’s Budget for 2026–27 shows a total spending plan of ₹3,24,134 crore. It also claims a revenue surplus of ₹6,857.76 crore, which on paper looks like a positive sign for the state’s finances. However, a closer look at the numbers raises serious concerns about how strong and stable this financial plan really is.

One of the biggest concerns is the state’s growing dependence on borrowing. The fiscal deficit is expected to rise to ₹58,458.71 crore, which means the government will spend much more than it earns. At the same time, Telangana’s total public debt is projected to cross ₹5.62 lakh crore by the end of 2026–27. This would be about 29% of the state’s Gross State Domestic Product (GSDP), which is close to the limit considered safe.

In addition to this, the state has off-budget guarantees of ₹3.01 lakh crore. These are liabilities that are not directly shown in the budget but still pose a financial risk. Together, these numbers suggest that the state is taking on a heavy financial burden.

Another issue is the government’s reliance on funds from the central government. The budget assumes that Telangana will receive strong support through central devolutions and grants. However, such funds can be uncertain and may not always meet expectations.

The revenue projections in the budget also appear overly optimistic. In the previous year, the state faced large shortfalls in expected revenue. Despite this, the new budget assumes a big increase in collections, which may be difficult to achieve.

Experts point out that the state is depending heavily on a few major tax sources that can be unstable. If these sources do not perform well, it could affect the overall financial health of the state. At the same time, continued borrowing to meet expenses raises concerns about long-term sustainability.

The government plans to raise around ₹60,000 crore in new debt during the year. While it says that the debt level will remain within the 30% GSDP limit, critics argue that this alone is not enough to ensure financial safety.

Overall, while the budget presents an image of growth and confidence, the underlying numbers suggest risks. High debt, uncertain revenue sources, and reliance on external funds make the state’s financial future less secure. Many believe that careful planning and more realistic estimates are needed to ensure long-term economic stability for Telangana.