The public debt outstanding of the Telangana Government is inching closer to ₹6 lakh crore mark. The State Government has proposed to raise close to ₹60,000 crore debt during the financial year 2026-27, going by the 2026-27 budget documents presented in the Assembly on Friday (March 20, 2026). This will take the total public debt outstanding to ₹5.62 lakh crore at the end of the next financial year from ₹5.03 lakh crore of the current fiscal.

Of the total amounts, the State proposes to raise close to ₹50,000 crore through open market borrowings and ₹22,345 crore from the Central Government. Loans from autonomous bodies and others are projected at ₹14,309 crore while special securities (small savings) and provident fund are expected to constitute ₹25,716 crore.

The loans, however, remain within the purview of the Fiscal Responsibility and Budget Management Act with the public debt outstanding constituting 29% of the GSDP, below the 30% threshold.