Telangana spent 12.74% of revenue expenditure on interest payment in 2024-25
The Telangana state government spent 12.74% of its total expenditure on interest payments during the 2024-25 fiscal year. This high debt-servicing cost highlights significant financial pressure and a heavy reliance on temporary advances from the Reserve Bank of India.
Why it matters
It sheds light on the fiscal health of Indian states and the long-term economic consequences of high debt accumulation.
The State government has spent 12.74% of its total expenditure on payment of interest for borrowings and other liabilities during 2024-25.
Telangana is ranked among 11 States which spent more than 10% of their respective expenditure on interest payments, according to the Comptroller and Auditor General of India (CAG). This indicates relatively higher debt servicing requirements, as interest payments were higher than pension payments and next only to salaries, constituting the committed expenditure of the State. Higher interest payments expose the pressure on State finances owing to borrowings by the previous government.
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