Hyderabad: The state government’s revenue receipts have shown a marginal improvement in the first quarter (April-June) of the fiscal year 2025-26, compared to the same period last year. The state recorded total receipts of Rs 57,499.58 crore, while the expenditure stood at Rs 52,559.96 crore.
Despite this improvement, the state’s revenue deficit widened to Rs 10,582.85 crore, driven largely by increased spending on debt servicing, employee salaries and pensions, according to a report submitted by the state government to the Comptroller and Auditor General of India (CAG)
The government has pegged its total receipts for 2025-26 at Rs 2,84,837 crore. Of this, 20.19 per cent or Rs 57,499.58 crore has been realised in the first quarter, including Rs 20,266.09 crore raised through borrowings. This marks a rise from 17.8 per cent achieved in the same period during 2024-25.
Specifically, revenue receipts have been estimated at Rs 2,29,720.62 crore for the current fiscal. By June-end, the government had realised Rs 37,220.81 crore, accounting for 16.20 per cent of the target, marginally up from 16.10 per cent in Q1 last year. GST contributed Rs 12,622 crore, while revenue from stamps and registrations stood at Rs 3,712.05 crore.
Sales tax fetched Rs 8,466.76 crore, state excise Rs 4,595.41 crore, and the state’s share of central taxes amounted to Rs 4,385.24 crore. Other taxes and duties contributed Rs 1,940 crore.
Non-tax revenues also showed a slight improvement, touching Rs 1,066.22 crore, which is 3.37 per cent of the estimated Rs 31,618.77 crore, compared to 2.84 per cent in the corresponding quarter last year.
On the expenditure front, Telangana spent Rs 52,559.96 crore in Q1, which is 19.95 per cent of the total estimated expenditure of Rs 2,63,486.74 crore for the full fiscal year. This too is an increase from 17.81 per cent recorded in Q1 of 2024-25.
Interest payments on state borrowings amounted to Rs 6,772.85 crore, comprising 34.97 per cent of the Rs 19,369.02 crore earmarked for the full year, higher than the 33.36 per cent spent in Q1 of last year. Salaries and wages cost the state Rs 11,608.49 crore, pensions Rs 4,572.91 crore, and subsidies Rs 5,932.92 crore.
The increased spending has reversed the state’s projection of a revenue surplus of Rs 2,738.33 crore for the fiscal. Instead, it now faces a revenue deficit of Rs 10,582.85 crore, a staggering negative 386.47 per cent deviation from the budget estimate.
The fiscal deficit too surged to Rs 20,266.09 crore in Q1, amounting to 37.52 per cent of the total estimate of Rs 54,009.74 crore, up sharply from 26.94 per cent in the same period last year.
