Telangana's Financial Tightrope: Reliance on RBI's Borrowing Mechanisms

The Telangana government found itself relying on the Reserve Bank of India's Special Drawing Facility (SDF), accumulating Rs 27,730 crore to meet financial needs over 363 days, as revealed in the 2024-25 annual accounts audited by the Comptroller and Auditor General (CAG).

Further, the state utilized Ways and Means Advances (WMA) totaling Rs 64,188 crore over 298 days, ending the financial year with an outstanding WMA of Rs 5,842 crore. These mechanisms help maintain the required cash balance with the central bank.

Criticism arose as Telangana Jagruthi president K Kavitha accused the current Congress administration of mismanagement, forcing reliance on RBI. Despite Rs 12,000 crore in monthly revenue, the state could not preserve the Rs 1.38 crore daily cash balance minimum, she asserted.