Hyderabad: T. Harish Rao on Monday said the CAG report exposed Telangana fiscal failure under the government led by A. Revanth Reddy, citing financial mismanagement and weak budget execution.
In a statement, he said the Telangana fiscal failure reflected unrealistic budgeting and administrative lapses. Moreover, he added that the findings validated concerns raised by BRS over poor fiscal planning and implementation.
He said that within two years and three months, the government weakened financial discipline. As a result, the Telangana fiscal failure pushed the state into a risky economic position.
Telangana fiscal failure seen in budget gaps
Harish Rao said the government’s claims of a realistic 2024–25 budget were contradicted by the report. Budget estimates stood at ₹2,21,242 crore, while actual expenditure reached only ₹1,67,804 crore.
Thus, the government realised just 76% of planned spending. Similarly, it estimated revenue expenditure at ₹2,20,945 crore, but actual spending stood at ₹1,77,224 crore, or 80%.
Therefore, he said the wide gap between projections and actuals highlighted Telangana fiscal failure. It clearly showed that the government poorly planned and executed the budget.
Telangana fiscal failure reflected in revenue deficit
Harish Rao described the shift in revenue position as alarming. Telangana recorded a revenue surplus of ₹779 crore in 2023–24.
However, it moved to a revenue deficit of ₹9,420 crore in 2024–25. Consequently, he said this sharp deterioration underscored Telangana fiscal failure.
“This is a complete collapse of financial management. BRS handed over a surplus state, but it has now become a deficit state,” he said.
He also pointed to excess expenditure across multiple sectors. The government spent ₹31,229 crore beyond allocations in seven grants and two appropriations.
In the revenue segment alone, it overspent by ₹10,525 crore. Hence, he said this further demonstrated Telangana fiscal failure.
He added that the government breached its FRBM target. It fixed debt at 32.80% of GSDP, but it rose to 34.29%.
As a result, total debt climbed to ₹5,62,662 crore. He said this indicated declining fiscal discipline and rising liabilities.
Finally, Harish Rao said these trends affected economic confidence. He added that sectors such as business, real estate, and industry were impacted.