Opinion: Borrowing spree risks Telangana’s future

Telangana’s increasing borrowing spree has raised concerns among economists and policymakers about the state’s long-term financial sustainability. While loans and bonds provide immediate funds for infrastructure and welfare projects, excessive debt accumulation could strain future budgets, limit fiscal flexibility, and increase interest obligations. Critics argue that without careful planning and effective revenue generation, the state risks compromising its ability to invest in essential services and development initiatives in the coming years.

Experts suggest that Telangana must balance borrowing with fiscal prudence, focusing on efficient utilization of funds and boosting revenue through economic growth, industrial investment, and improved tax compliance. Overreliance on debt may offer short-term gains, but sustainable financial management is crucial to safeguard the state’s future, ensure stability, and maintain public confidence in governance.

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