Telangana needs to repay borrowings of Rs 2.86 lakh crore in 10 years, says CAG

economictimes.indiatimes.com:

Telangana government is obligated to repay over Rs 2.67 lakh crore loans borrowed from the market, both principal and interest by FY33, even as the Gross State Domestic Product (at current prices) grew at an average growth rate of 15.09 per cent from Rs 8.60 lakh crore in 2018-19 to Rs 13.13 lakh crore in 2022-23, said CAG report on Friday. According to the report (for 2022-23) by Comptroller and Auditor General (CAG) which was placed in the state legislature, besides market borrowings, the state government will also have a liability to repay Rs 19,210 crore as principal in the next nine years in respect of borrowings taken from some financial institutions such as National Small Saving Fund and LIC.
«As can be seen from the above table, the state government will have to repay Rs 2,67,018 crore as principal and interest on the market borrowings in the next ten years by 2032-33,» the auditor said.

The borrowings of the state governments are governed by Article 293 of the Constitution as they borrow money from the market for implementation of various state plan programmes and fulfilment of fiscal liabilities.
«Apart from this, the state government will also have a liability to repay Rs 19,210 crore as principal in the next ten years in respect of borrowings taken from the following financial institutions...,» it further said.

The figures suggest that the state government will have to mobilise substantial amount,