The Telangana government faces the challenge of repaying over Rs 2.67 lakh crore in loans borrowed from the market by FY33, as its Gross State Domestic Product grew at an average rate of 15.09 per cent from 2018-19 to 2022-23. The Comptroller and Auditor General's report highlighted the state's liabilities, including the obligation to repay Rs 19,210 crore to financial institutions. The state's debt servicing could strain its finances, with a Debt to GSDP ratio exceeding targets set by the TSFRBM Act and the XV Finance Commission.
