BRS Govt Budgets Overpromised but Underdelivered, Says CAG Data
Analysts attributed this large gap to inflated revenue projections and ambitious expenditure targets.
Hyderabad:An analysis of Budget data and audit findings has revealed a huge gap between budget estimates and actual expenditure during the nine-year-long BRS regime in Telangana, indicating that the budgets were 'unrealistic'.
Data from the Comptroller and Auditor General (CAG) show that between 2014–15 and 2022–23, actual spending averaged 82.3 per cent of Budget estimates, reflecting consistent overestimation. The ratio of actual expenditure to estimates, a key measure of budget accuracy, remained uneven through the period.
The lowest utilisation was recorded in 2014-15, when only 61.9 per cent of the `1,00,638 crore budget was spent. While some years showed higher utilisation — including 93.3 per cent in 2016-17 and 97.5 per cent in 2019-20 — the overall trend reflected deviations. In 2022-23, expenditure stood at `2,04,085 crore against an estimate of `2,56,859 crore, or 79.5 per cent.
Across the nine years, total budget estimates were Rs 14,87,834 crore, while actual spending was R 12,24,877 crore, leaving a substantial gap in government budgeting.
Pointing to CAG findings on earlier budgets, senior Congress MLA T. Rammohan Reddy said it was “ridiculous” for former finance minister T. Harish Rao to criticise the current government’s budgeting. He pointed out that Harish Rao, as finance minister during the BRS regime, had presented four budgets, and CAG data had exposed how unrealistic they were.
He said the Congress government’s first budget achieved 80 per cent utilisation and expressed confidence of reaching full utilisation over time through more realistic estimates. He also noted that the modest seven per cent increase in the budget size this year reflected the Congress government’s commitment to a realistic budget.
Despite a steady rise in both budget size and actual spending — from Rs 1,00,638 crore and Rs 62,306 crore in 2014-15 to Rs 2,56,859 crore and Rs 2,04,085 crore in 2022–23 — the proportion of utilisation did not keep pace.
Analysts attributed this large gap to inflated revenue projections and ambitious expenditure targets.
In comparison with other states, Telangana ranked among the weaker performers. In 2021-22, it utilised 79.3 per cent of its `2,30,726 crore budget, with only Punjab faring worse at 74.7 per cent. In contrast, several states exceeded their budget estimates, including Rajasthan (116.4 per cent), Karnataka (113.1 per cent), and Madhya Pradesh (110.6 per cent), while Kerala (100.7 per cent) and Maharashtra (99.3 per cent) closely matched their targets.
The gap between estimates and actual spending in Telangana averaged about 20 per cent, significantly higher than the roughly 5 per cent gap seen in most states. Analysts linked this to structural issues in budget formulation, including overestimation of revenues leading to shortfalls and delayed expenditure.
A comparison with the undivided Andhra Pradesh period (2004-05 to 2013-14) showed higher average utilisation at 87 per cent of estimates. At the national level, the Union government recorded an average expenditure of 102.9 per cent of its budget estimates between 2014-15 and 2022-23, indicating closer alignment between projections and spending.
CAG audit reports submitted to the state legislature have repeatedly flagged these gaps and called for more realistic budgeting practices.
Against this backdrop, the Congress government’s 2024-25 budget recorded 80 per cent utilisation, indicating some improvement but remaining below optimal levels. Analysts said improved forecasting, realistic revenue projections and stricter fiscal discipline are required to reduce the gap between estimates and actual expenditure.
