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Telangana's Public Debt at 34.29% of GSDP, Exceeds FRBM Ceiling of 32.8% Including Off-Budget Borrowings of ₹1.17 Lakh Crore

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
01 Apr 2026
~2 min
Source: The Hindu
Key Data:₹4.59 lakh crore₹1.17 lakh crore34.29% of GSDP32.8% FRBM ceiling₹16.4 lakh crore GSDP₹56,209 crore market loans
Bodies:Comptroller and Auditor General of India (CAG)
Practice MCQs from today's news ▸
What This Article Covers

1.CAG's 2024-25 report reveals Telangana's total outstanding liabilities, including off-budget borrowings, reached 34.29% of GSDP, exceeding the FRBM limit of 32.8%.

2.The state raised ₹56,209 crore via 58 market loans at interest rates between 7.07%-7.48%, redeemable between 2035-2055, indicating long-term debt servicing pressures.

3.The examiner's focus will be on the concept of off-budget borrowings (OBBs) as a fiscal risk, the role of CAG, and the FRBM framework's enforcement challenges.

The Big Picture
Prelims · HighMains · Medium

The CAG report flags that Telangana's outstanding public debt, when including off-budget borrowings, stands at 34.29% of its GSDP, breaching the FRBM Act's prescribed ceiling of 32.8%. This highlights a critical fiscal management challenge and the growing use of off-budget liabilities by states, a key topic for both prelims and mains.

Exam Lens

Quick Exam Facts From News

Total Outstanding Debt₹4.59 Lakh Crore
Off-Budget Borrowings (OBBs)₹1.17 Lakh Crore
Debt-to-GSDP Ratio (with OBBs)34.29%
FRBM Ceiling for Debt-to-GSDP32.8%
Telangana GSDP (2024-25)₹16.4 Lakh Crore

1-Minute Revision

  • ›Total Outstanding Debt: ₹4.59 Lakh Crore
  • ›Off-Budget Borrowings (OBBs): ₹1.17 Lakh Crore
  • ›Target this Data: Debt-to-GSDP ratio of 34.29% vs. FRBM ceiling of 32.8% for Telangana (2024-25).
  • ›Target this Nodal Body: Comptroller and Auditor General of India (CAG).
  • ›Target this Legal Point: Fiscal Responsibility and Budget Management (FRBM) Act.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which constitutional body is responsible for auditing state government finances and prepared the report mentioned in the news?

Q2Statement-basedHard

Consider the following statements regarding the CAG report on Telangana's finances for 2024-25:

1. The state's outstanding public debt, excluding off-budget borrowings, was within the FRBM ceiling.

2. Off-budget borrowings are loans raised by state-owned corporations but serviced by the government.

3. The total outstanding liabilities, including off-budget borrowings, worked out to 32.8% of the GSDP.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the CAG report, what was the amount of off-budget borrowings (OBBs) for Telangana as on February 28, 2025?

Q4Application/ImpactMedium

What is the primary fiscal risk highlighted by the CAG report regarding Telangana's finances?

All 25 MCQs ▸
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