HYDERABAD: Ahead of the annual state Budget, Telangana is staring at a massive revenue deficit, with the fund flow falling far short of estimates. By the end of January, the state reported a revenue deficit of Rs 26,050 crore.
This revenue deficit of -8,758.83% is much lower than the projected revenue surplus of Rs 297.42 crore. Similarly, the fiscal deficit stood at Rs 58,586.64 crore, exceeding the estimated Rs 49,255.4 crore.
According to a report uploaded to its website by the Comptroller and Auditor General of India (CAG) on Telangana’s finances up to January 2025, the state managed to receive only 55.96% of its estimated revenue in the first 10 months of the financial year, with just two months left in FY 2024-25.
Against estimated revenue receipts of Rs 2,21,242.23 crore, the state received only Rs 1,23,815.6 crore, while revenue expenditure stood at Rs 1,49,866.10 crore. This has forced the government to rely on borrowings to bridge the gap.
Among tax revenues, GST remained the highest contributor, bringing in Rs 42,657.9 crore in the first 10 months, followed by Rs 26,725.57 crore from sales tax.
Telangana also earned Rs 15,585.35 crore from state excise duties, Rs 15,336.44 crore from its share of Central taxes, Rs 6,644.56 crore from other taxes and duties and Rs 5,821.88 crore from stamps and registration fees. However, under the non-tax revenue, the state received only Rs 5,866.4 crore against the estimated Rs 35,208.44 crore.
Revenue from Stamps and Registrations was disappointingly down, with collections of just Rs 5,821.88 crore against the estimated Rs 18,228.82 crore. Similarly, grants-in-aid and contributions stood at Rs 5,176.72 crore, far below the expected Rs 21,636.15 crore. As per statistics, these shortfalls have contributed to the overall revenue deficit.
Meanwhile, the state government has incurred a total expenditure of Rs 1,78,947 crore — including revenue (Rs 1,49,866.1 crore) and capital expenditure (Rs 29,081.33 crore). The state performed relatively well in capital expenditure, achieving 86.84% of the projected Rs 33,456.5 crore.
On the other hand, borrowings have exceeded projections. While the state had planned to borrow Rs 49,255.41 crore in 2024-25, it had already borrowed Rs 58,586.64 crore in the first 10 months. The highest borrowing was in January (Rs 10,407.7 crore) followed by Rs 10,328.86 crore in December.
