HYDERABAD: Though the share of Central grants continues to decline, state’s own tax revenues from bulk receipts and non-tax revenues are increasing.
According to the 'Fiscal Health Index–2026', released by Niti Aayog after analysing the fiscal situation of all states in 2023–24, the fiscal health of Telangana is at seventh place among all states with a score of 44.3 out of 100 points.
According to the report, Telangana’s total revenue receipts increased steadily from Rs 1,02,543 crore in 2019–20 to Rs 1,69,293 crore in 2023–24, around 11–12 per cent of GSDP, reflecting consistent revenue mobilisation. However, in 2023–24, there was a slight dip to 11.27 per cent.
The state’s own tax revenue forms 80 per cent of receipts, up from 74 per cent in the previous year. Taxes on Commodities & Services, GST, and income taxes account for the major components in the current year, indicating a diversified tax base. The state’s non-tax revenues have experienced a stronger CAGR of 33 per cent annually since 2019–20 whereas tax revenues have grown by 13.4 per cent.
As per Niti Aayog, debt levels of Telangana have risen steadily, marginally exceeding the prescribed FRBM ceiling. As per FRBM, the outstanding debt and other liabilities were to remain below 33.10 per cent of GSDP for 2023–24. However, the state recorded outstanding debt and other liabilities of Rs 5,17,659 crore, equivalent to 34.47 per cent of GSDP, slightly exceeding the prescribed limit, the report stated.
The report explained: “Telangana’s fiscal performance in 2023–24 reflects rising development expenditure indicated by increasing allocation on Social and Economic Services and a strong increase in capital outlays, indicating sustained emphasis on infrastructure creation and welfare.”
It said that during 2019–20 to 2023–24, economic services dominated developmental capital expenditure, registering an increase from Rs 14,449 crore to Rs 33,937 crore, while social services rose from Rs 1,765 crore to Rs 9,116 crore. General services, however, remained a minimal component, reflecting limited administrative capital requirements.