According to a report released by CAG revenue and fiscal deficit of Telangana have further widened, touching Rs 28,132 crore and Rs 65,456 crore respectively by the end of February 2025 in the 2024-25 financial year
Hyderabad: The revenue and fiscal deficits of Telangana have further widened, touching Rs 28,132 crore and Rs 64,456 crore respectively by the end of February 2025 in the 2024-25 financial year, according to a report released by the Comptroller and Auditor General (CAG) on Wednesday. The spike in revenue deficit has been attributed to increased government expenditure on subsidies, salaries, pensions, and interest payments on existing loans.
In comparison, the state's revenue deficit stood at Rs 26,050 crore and fiscal deficit at Rs 58,586 crore at the end of January 2025, indicating a noticeable rise within a month. The report points to a mismatch between the state’s earnings and its growing financial commitments.
In its Budget estimates for 2024-25, the Telangana government had projected a revenue surplus of Rs 297 crore and a fiscal deficit of Rs 49,255 crore for the entire fiscal. However, actual figures by the end of February reveal a revenue deficit and a fiscal deficit that have already exceeded the budgeted targets.
By February end, the state incurred a total revenue expenditure of Rs 1,64,268 crore, while its revenue receipts stood at only Rs 1,36,136 crore. Major expenditure components include Rs 38,962 crore towards salaries, Rs 15,480 crore for pensions, Rs 12,291 crore on subsidies, and Rs 24,078 crore towards interest payments on loans.
On the income side, the government generated Rs 1,24,054 crore in tax revenues, Rs 6,071 crore in non-tax revenues, and received Rs 6,009 crore as grants-in-aid from the Centre. Among tax revenues, GST contributed Rs 46,440 crore, sales tax Rs 29,238 crore, the state’s share in central taxes Rs 17,243 crore, excise duties Rs 16,808 crore, and stamps and registrations Rs 7,033 crore.
