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India state fiscal health: Telangana tops guarantees burden in FY25

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India state fiscal health: Telangana tops guarantees burden in FY25

Home / Economy / News / India state fiscal health: Telangana tops guarantees burden in FY25

Business Standard's India State Fiscal Health Tracker compares states and Union Territories on outstanding state guarantees as a share of GSDP. Here's what the FY25 Budget Estimates show

Telangana had the highest outstanding state guarantees-to-GSDP ratio among seven states with comparable FY25 data. (Representative image from file)

Akshita Singh New Delhi 3 min read Last Updated : Aug 28 2026 | 4:16 PM IST

Telangana had the highest outstanding state guarantees as a share of gross state domestic product (GSDP) among the seven states and Union Territories for which comparable data was available for 2024-25, at 13.4 per cent, according to Business Standard 's India State Fiscal Health Tracker .

It was followed by Chhattisgarh at 5.0 per cent, Bihar at 3.3 per cent, Jharkhand at 1.0 per cent and Tripura at 0.7 per cent. Uttarakhand and Arunachal Pradesh had the lowest ratios, at 0.0 per cent each when rounded to one decimal place.

The figures are based on 2024-25 Budget Estimates (BE) from the Reserve Bank of India's 2025 Handbook of Statistics on Indian States.

State government guarantees are contingent liabilities. They arise when a state guarantees the borrowing or other obligations of public-sector entities or other eligible bodies.

A guarantee does not usually create an immediate claim on the state budget. However, it can become a fiscal obligation if the entity whose borrowing or obligation has been guaranteed fails to meet its commitments.


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