Debts Exerts Pressure on Telangana’s Finances, Says CAG
Borrowings surge as deficits widen in 2025-26 finances up to November
Hyderabad: The Comptroller and Auditor General’s (CAG) report on Telangana’s state finances for the month ending November in the 2025-26 fiscal presents a mixed picture, with revenue collections progressing steadily while borrowings and committed expenditure exerted pressure on the fiscal position. According to the CAG report, total receipts stood at Rs 1,66,785.68 crore up to November, accounting for 58.55 per cent of the budget estimates for the year 2025-26.
The state reported a revenue deficit of Rs 9,372.94 crore by November, reversing the modest surplus envisaged in the budget. However, revenue deficit decreased when compared with the October-end, when it was Rs 10,113.37 crore. The fiscal deficit rose to Rs 58,068.89 crore from Rs 50,541.22 crore in October, surpassing the annual estimate, while the primary deficit widened to Rs 39,582.10 crore, highlighting mounting fiscal stress despite improved revenue mobilisation.
Revenue receipts reached Rs 1,08,685.45 crore, achieving 47.31 per cent of the annual target and marginally improving over the corresponding period of the previous year. Tax revenue remained the principal contributor, realising Rs 1,00,443.26 crore, or 57.29 per cent of budget estimates.
Goods and Services Tax (GST) collections amounted to Rs 34,923.84 crore, while sales tax yielded Rs 21,512.69 crore. State excise duties contributed Rs 15,142.71 crore, and the State’s share in Union taxes touched Rs 13,468.88 crore. Non-tax revenue, however, lagged at Rs 4,770.18 crore, just over 15 per cent of the projected figure, and grants-in-aid were limited to Rs 3,472.01 crore.
Capital receipts crossed budget expectations, reaching Rs 58,100.23 crore, driven largely by borrowings and other liabilities, which exceeded the annual estimate at Rs 58,068.90 crore by November. This reflected a sharp rise in dependence on debt to finance expenditure.
On the spending side, total expenditure stood at Rs 1,54,499.48 crore, representing 58.64 per cent of the budget. Revenue expenditure accounted for Rs 1,18,058.39 crore, with interest payments and pensions nearing their full-year provisions at over 95 per cent utilisation.
Salary and wage payments touched nearly 72 per cent of estimates, while subsidy expenditure reached 60 per cent. Capital expenditure was almost fully realised at Rs 36,441.09 crore, indicating accelerated spending on asset creation.
Sector-wise, the general sector recorded the highest utilisation, followed by the economic sector, where capital outlay significantly exceeded the budgeted proportion. Social sector expenditure remained comparatively lower.
