Telangana Faces Revenue Shortfall: Only 33.93% Realised by August FY 2025-26

AP & Telangana State Head – Anandam Dundi :

Poor run of Telangana’s finances continued for the fifth month in a row in the current financial year (2025-26) with the total revenue receipts at the end of August standing at ₹96,654 crore, just 33.93% of the ₹2.84 lakh crore projected in the budget estimates.

Of the total receipts, the highest was from borrowings and other liabilities which reached ₹33,415 crore. This is 61.87% of the ₹54,009 crore limit provided by the Union Finance Ministry under the Fiscal Responsibility and Budget Management (FRBM) Act.

Tax revenue, part of Revenue receipts, was a shade better at ₹59,967 crore marking 34.2% of the ₹1.75 lakh crore projected in the budget estimates and the non-tax revenues remained at ₹1,578 crore, a meagre 4.99% of the ₹31,618 crore projected for the fiscal. Revenue through Grants in Aid and Contributions too remained sluggish at ₹1,673 crore, 7.35% of the ₹22,782 crore projected.

State’s share of Union taxes has been impressive at ₹7,413 crore, 40.32% of the ₹18,384 crore estimates for the fiscal. Revenue through Goods and Services Tax at the end of five months was ₹21,144 crore, 35.42% of the ₹59,704 crore projected in the budget estimates while the collections through Stamps and Registration department was at ₹6,218 crore of the ₹19,087 crore registering 32.58% realisation.

Expenditure

On the expenditure front, interest payment continues to be higher at ₹11,447 crore by August end, 59.1% of the ₹19,369 crore projected for the fiscal, according to the provisional figures submitted to the Comptroller and Auditor General of India. The Government had spent ₹20,141 crore on payment of salaries and wages. Payment of pensions continued to be higher at ₹7,701 crore, 58.75% of the ₹13,109 crore projected for the fiscal with seven more months still to go.

₹7,492 crore subsidy

The Government had incurred expenditure of ₹7,492 crore, 45.84% of the ₹16,345 crore towards subsidy primarily on account of free power to farm sector.

The State registered a revenue deficit of ₹11,051 crore by August end against ₹2,738 crore surplus projected for the year and the fiscal deficit was at ₹33,415 crore. The primary deficit at the end of the five month period was ₹21,967 crore, 63.42% of the ₹34,640 crore projected for the fiscal.

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