State excise duties witnessed a notable increase, with collections of Rs 17,507.01 crore, amounting to 63.38 per cent of the budget, compared to 54.96 per cent in the previous fiscal. Sales tax and the state’s share of union taxes continued to show steady growth, reinforcing the state’s revenue base.
Hyderabad: The Comptroller and Auditor General’s (CAG) report on Telangana’s finances for the period ending December 2025 has highlighted a notable improvement in the revenue position, with receipts registering a significant rise compared to the same period last year. The report attributes the upward trend mainly to stronger collections from the stamps and registration department, state excise duties, goods and services tax, and a steady increase in non-tax revenues.
According to the CAG, Telangana’s total revenue receipts stood at Rs 1,24,911.19 crore by December 2025, achieving 54.38 per cent of the Budget estimates of Rs 2,29,720.63 crore, an improvement over the 50.76 per cent achieved during the same period in 2024-25. Tax revenue remained the largest contributor, reaching Rs 1,13,985.07 crore, 65.02 per cent of the budgeted figure. This reflected a stronger performance compared to the previous year’s 62.07 per cent, indicating enhanced efficiency in tax mobilisation and compliance.
Goods and Services Tax collections touched Rs 39,004.84 crore, accounting for 65.33 per cent of the budget estimates, slightly higher than the corresponding period last year. Stamps and registration revenue showed a sharp rise, reaching Rs 11,304.19 crore, or 59.22 per cent of the annual target, a substantial jump from 41.28 per cent recorded earlier, underlining the revival in real estate activity and improved registration processes.
State excise duties witnessed a notable increase, with collections of Rs 17,507.01 crore, amounting to 63.38 per cent of the budget, compared to 54.96 per cent in the previous fiscal. Sales tax and the state’s share of union taxes continued to show steady growth, reinforcing the state’s revenue base.
Non-tax revenue stood at Rs 7,120.53 crore, which was 22.52 per cent of the budget estimates, higher than the 15.59 per cent recorded in the same period last year. However, grants-in-aid and contributions were relatively lower at Rs 3,805.59 crore, reaching only 16.7 per cent of the annual projection, compared to 22.05 per cent earlier.
Capital receipts exceeded expectations, with Rs 65,965.32 crore realised against the budget estimate of Rs 55,116.67 crore, reflecting 119.68 per cent achievement. This was largely driven by borrowings and other liabilities, which crossed the annual target and stood at Rs 65,930.31 crore, highlighting the government’s dependence on market borrowings to finance expenditure commitments.
On the expenditure side, spending reached Rs 1,77,204.16 crore, which was 67.25 per cent of the budgeted amount, higher than the 61.87 per cent last year. Revenue expenditure accounted for Rs 1,34,512.21 crore, with major components including salaries and wages at Rs 35,746.99 crore, interest payments at Rs 21,454.17 crore, and pensions at Rs 14,126.99 crore. Capital expenditure recorded a strong performance, touching Rs 42,691.95 crore, achieving nearly 117 per cent of the budget estimate, reflecting the state’s focus on infrastructure and asset creation.
The sector-wise analysis showed higher utilisation in the general and economic sectors, while social sector expenditure remained moderate. The state reported a revenue deficit of Rs 9,601.02 crore by December 2025, compared to a surplus position projected earlier, and the fiscal deficit stood at Rs 65,930.31 crore. The CAG observed that despite improved revenue collections, rising expenditure and higher borrowings continued to exert pressure on the state’s finances.
