The report also highlights the escalating debt servicing burden faced by the state. In the next ten years, Telangana will have to repay Rs 2.67 lakh crore as principal and interest on market borrowings.

It was a “major challenge” for the Congress government that came to power last December to bring the state’s “frivolous expenditure” under control and streamline salaries to the state’s 3.69 lakh government employees and 2.87 lakh pensioners from March this year, Deputy CM and Minister for Finance, Vikramarka said.