Payment of high interest for loans obtained by the BRS government continues to haunt the State finances in the year 2025, even as the Congress government is trying hard to improve the general economy of the State, which registered slow pace of growth over the past couple of years.
The interest burden of the State has been mounting with the State government paying ₹18,486 crore till November end against ₹19,369 crore budgeted for the entire financial year. The interest payment is indicative that the government could end up paying interest in excess of ₹25,000 crore, almost 10% of the overall revenue receipts estimated at ₹2.29 lakh crore, at the end of the fiscal.
The situation was not different during the previous fiscal year when the government remitted interest of ₹26,688 crore against ₹17,729 crore estimated for the financial year. A majority of these loans were obtained for the much-publicised Kaleshwaram project, which saw structural failures. “We have to borrow more to repay the interest,” was how a senior Finance department official summed up the situation.
Financial woes
High-interest loans strain Telangana’s finances in 2025
