Hyderabad: BRS MLC Dr. Dasoju Sravan Kumar on Monday issued a sharp warning about a looming fiscal collapse in Telangana, citing data from the latest Comptroller and Auditor General (CAG) report. He accused the Congress government of reckless borrowing and weak revenue management, claiming the State had already exhausted 94% of its borrowing capacity for 2025–26 by October.
Referring to the CAG’s October 2025 data, Sravan noted that while Telangana’s annual borrowing limit stands at ₹54,009 crore, the State has already raised ₹50,541 crore leaving just 6% headroom for the remaining five months. “This is not just financial mismanagement, this is fiscal recklessness,” Sravan said in a social media post.
Telangana fiscal collapse: Dasoju Sravan cites deep revenue-expenditure gap
Despite high borrowings, Sravan pointed out, revenue receipts reached only ₹94,555.97 crore just 41.16% of the projected ₹2,29,726.02 crore. Tax revenues, including GST, state excise, and land income, have underperformed. He accused the government of failing to stimulate income generation, promote industry, or build capital assets.
Sravan alleged that the Revanth Reddy-led administration may resort to distress sales of public property. “Is the Chief Minister planning to auction Telangana piece by piece to developers? Will public assets be put on fire-sale just to survive?” he asked.
CAG flags high spending, low capital creation under Congress rule
The CAG report shows total receipts, including borrowings, stood at ₹1,45,642.54 crore (58.63% of the annual target), while total expenditure reached ₹1,81,936.45 crore (68.83%). The fiscal deficit hit ₹36,294.11 crore already 93.58% of the full-year estimate of ₹38,800.94 crore.
Revenue spending alone stood at ₹1,40,769.34 crore, driven by ₹16,758.95 crore in interest payments, ₹28,299.67 crore in salaries, ₹17,223.79 crore in pensions, and ₹11,286.36 crore in subsidies. However, capital expenditure lagged at ₹20,565.59 crore, only 57.6% of the budgeted ₹35,700.24 crore raising concerns over weak infrastructure investment.
Sravan accused Chief Minister Revanth Reddy of prioritising image-building over fiscal recovery. “Instead of addressing the financial crisis, the government is busy with slogans like ‘Future City’, ‘Musi River Revival’, and ‘Telangana Rising’, while the State slips into debt and deficit,” he said.
He concluded with a warning: “Revanth Reddy’s zero vision and political theatrics have pushed Telangana to the edge. This is a moment of reckoning—please save Telangana.”