Telangana revenue deficit reaches Rs 15,096 crore in six months, says BRS MLC Dasoju Sravan

Hyderabad: Telangana recorded a revenue deficit of Rs 15,096.18 crore between April and September 2026, against a budgeted surplus of Rs 6,857.76 crore, BRS MLC Dr Dasoju Sravan said. He cited the latest half-yearly accounts of the Comptroller and Auditor General of India (CAG). Based on these figures, he accused Chief Minister A. Revanth Reddy’s government of mishandling the state’s finances.

In a press note issued from Telangana Bhavan, Sravan said the figures exposed a major gap between budget projections and actual performance. He alleged that excessive borrowing and weak revenue mobilisation had worsened the state’s financial position. Therefore, he called for new revenue sources and more prudent financial management.

According to Sravan, the revenue position had diverged sharply from the budget target within the first six months of 2026–27. He put the negative deviation at 220.13 per cent. As a result, the state was losing an average of nearly Rs 2,516 crore a month, he said.

The primary deficit reached Rs 28,046.81 crore by September. This amounted to 75.49 per cent of the full-year target. Sravan argued that the figures indicated growing reliance on market borrowing to meet routine expenditure.

Telangana revenue deficit raises borrowing concerns

Sravan said the government had used Rs 44,612.16 crore of its annual net borrowing limit of Rs 58,458.71 crore. This represented 76.31 per cent of the available limit. Consequently, only Rs 13,846.55 crore remained for October 2026 to March 2027.

He warned that Telangana could approach its limits under the Fiscal Responsibility and Budget Management framework by November. In his assessment, this could lead to liquidity pressures.

As of September, net public debt stood at Rs 35,536.27 crore. Public Account liabilities totalled Rs 9,309.83 crore, according to the figures he cited. Meanwhile, the Contingency Fund showed a negative balance of Rs 8.23 crore. The net cash balance was also negative, at Rs 225.71 crore.

Pension spending was another concern raised by Sravan. The government had spent Rs 14,235.36 crore, or 96.60 per cent, of its annual pension allocation of Rs 14,736.56 crore. Consequently, only Rs 501.20 crore remained for the next six months.

Sravan questioned how the government would meet pension payments through March 2027. He also asked whether it would resort to off-budget borrowing to cover the shortfall. In addition, establishment salaries and wages had consumed Rs 25,258.11 crore. That represented 52.23 per cent of the Rs 48,358.21 crore allocation.

Capital expenditure remains below budget targets

Sravan also criticised the pace of capital spending. In the General Sector, expenditure on administrative capital assets stood at Rs 432.10 crore. This was 18.44 per cent of the Rs 2,343.64 crore allocation.

In the Social Sector, spending reached Rs 5,747.46 crore, or 29.91 per cent of the Rs 19,214.83 crore budget. The sector covers schools, hospitals and welfare hostels. Against this backdrop, Sravan questioned the pace of spending and referred to the government’s promise to establish Young India Integrated Residential Schools in every constituency.

Total expenditure up to September stood at Rs 1,34,852.30 crore. Of this, revenue expenditure accounted for Rs 1,07,109.36 crore, or 79.43 per cent. By comparison, recovery of loans and advances reached only Rs 23.49 crore. That was 1.58 per cent of the Rs 1,486.82 crore target.

Telangana revenue deficit reflects weak revenue receipts

Sravan said total revenue receipts had reached Rs 92,013.18 crore by September. This represented 38.14 per cent of the annual target of Rs 2,41,263.59 crore. Meanwhile, tax revenue stood at Rs 82,552.96 crore, or 45.52 per cent of the Rs 1,81,367.39 crore target.

Non-tax revenue was Rs 5,754.24 crore, just 16.10 per cent of the Rs 35,730.20 crore target. September collections in this category stood at Rs 278.60 crore. Sravan demanded an explanation for the shortfall. He also raised allegations concerning sand smuggling and mineral royalties.

Central Grants-in-Aid totalled Rs 3,705.98 crore, or 15.34 per cent of the Rs 24,166 crore target. Similarly, land revenue stood at Rs 0.21 crore against a target of Rs 11.15 crore. This amounted to 1.90 per cent of the target.

State excise revenue reached Rs 10,470.81 crore, or 37.84 per cent of the Rs 27,668.48 crore target. Stamps and registration collections stood at Rs 9,033.36 crore. This represented 46.23 per cent of the Rs 19,540.54 crore target.

Sravan attributed the registration revenue shortfall to uncertainty surrounding HYDRAA demolitions and Section 22A policies. He alleged that these issues had affected Hyderabad’s real estate market.

BRS seeks disclosure of state liabilities

Sravan also cited page nine of the CAG report. He said the auditor had recorded that information on state guarantees, future revenues pledged by public sector undertakings and contingent liabilities had not been received from the state government. He added that the report carried a similar observation about Public Account borrowings.

The BRS leader alleged that the missing information raised questions about the disclosure of state liabilities. Accordingly, he demanded that the government provide details of off-budget debt, sovereign guarantees and Public Account liabilities to the public and the CAG.

The party also sought a White Paper in the Legislative Assembly. It wanted the government to explain how it planned to manage its finances and protect employees and pensioners. In addition, Sravan called for clear disclosure of the state’s liabilities, remaining borrowing capacity and available pension funds.

He also criticised government spending on publicity campaigns, including “Telangana Rising”. The BRS demanded disclosure of the outstanding financial information and a detailed account of the state’s fiscal position.