Telangana continues to struggle with finances in the financial year 2025-26
| Photo Credit: Graphics: M VENKAT RAO
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.
What are total receipts?
Total receipts includes revenue receipts and capital receipts. The latter includes recovery of loans and advances, borrowings and other liabilities.
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.
What are revenue receipts?
They are funds received by a government in the form of tax revenue, non-tax revenue, and grants-in-aid and contributions. Tax revenue sources are Goods and Service Tax; Stamps and Registration; Land Revenue; Sales Tax; State Excise Duties; State’s share of Union taxes, and other taxes and duties. Non-tax revenue includes interest of loans given, dividends on investments.
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.
Published – September 23, 2025 06:03 pm IST
