HYDERABAD: The state government is facing a significant revenue deficit. In the first four months of the 2024–25 financial year, as of July-end, the deficit stood at Rs 11,328.5 crore, which is 3,808.92% higher than Budget estimates. The government initially estimated a revenue surplus of Rs 297.42 crore for 2023–24.
From April to July, the state recorded Rs 47,712.69 crore in revenue receipts, excluding borrowings, while revenue expenditure totalled Rs 59,041.19 crore. This gap led the government to rely heavily on borrowings.
According to a CAG report on Telangana’s finances, the majority of revenue receipts come from taxes. Goods and Service Tax (GST) generated the highest revenue, which was Rs 14,727.41 crore, followed by sales tax at Rs 10,874.15 crore. Non-tax revenue was Rs 1,257.11 crore.
Tax revenue saw a significant decline in July, dropping by Rs 2,222.4 crore compared to June, with collections of Rs 12,190.37 crore in June and Rs 9,965.9 crore in July. By July-end, total government spending reached Rs 66,666.53 crore, including Rs 59,041.19 crore in revenue expenditure and Rs 7,625.34 crore in capital expenditure.
Govt paid over Rs 8K cr in loans since April
In the first four months, the government paid Rs 8,192.81 crore in interest on loans, with monthly payments of Rs 1,865.15 crore in April, Rs 1,864.03 crore in May, Rs 2,203.87 crore in June and Rs 2,259.76 crore in July.
The fiscal deficit for this period was Rs 23,563.71 crore, with a primary deficit of Rs 12,370.9 crore. Additionally, the government borrowed Rs 23,563.71 crore in the same period.
