Hyderabad: According to preliminary reports from the Auditor General and the Auditor General of India (CAG), the Congress-led Telangana government has performed well in managing state finances.
Telangana’s total tax revenue was Rs 167,804.32 crore, accounting for 75.85% of the budget estimate (BE) Rs 2,212,422.3 crore. The majority of these revenues are Rs 1,362,347.7 billion, coming from taxes, with target revenue reaching 82.90% of the target Rs 1,64,397.64 crore. However, non-tax revenues fell slightly, generating Rs 23,607777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777
Compared with the previous fiscal (2023-24), tax revenues are smaller from Rs 1,35,540.17 crore, while non-tax revenues are slightly slightly higher than Rs 23,819.50 crore. A key highlight is the strong performance of the sales tax, which brought Rs 31,815 crore, accounting for 95.12% of the budget Rs 33,449 crore. The state also won a union tax of Rs 19,149 crore, exceeding the estimated Rs 18,384 crore.
The collection of goods and services tax (GST) was Rs 50,343 crore, reaching the target of Rs 58,594 crore by 85.92%. However, state excise and other taxes are insufficient. The excise tax accounted for Rs 18,603 crore (estimated at Rs 25,617 crore), and other taxes generated Rs 7,896 crore (compared to Rs 1,011,111 crore). Meanwhile, the income from grants and donations is a weakness, generating only Rs 79.13 crore, only 36.57% of the estimated Rs 21,636 crore.
In terms of expenditure, the state’s revenue expenditure reached Rs 1,76,586.74 crore, accounting for 79.92% of the estimated Rs 2,20,944.81 crore. The government prioritizes salary, pensions and interest. The wages and wage costs alone are Rs 42,245 crore, exceeding the budgeted Rs 40,041 crore. Pension expenditure soared to Rs 16.95 crore, or 145% of the estimated Rs 11.641 crore, while interest payments involved Rs 26.688 crore, and 150% of the estimated Rs 17,729 crore. The subsidy burden also increased from Rs 9,410.51 crore in 2023-24 to Rs 11,508.94 crore, totaling 70.86% of Rs 16242.42 crore.
Despite the increase in revenue, fiscal pressure translated into a revenue deficit of Rs 8782 crore, in sharp contrast to the budgeted surplus of Rs 29.7 crore. The fiscal deficit is Rs 483,22 crore, slightly below Rs 49,255 crore. The major deficit also improved, with a total of Rs 21,633 crore, significantly lower than expected Rs 315,25 crore.
Total expenditure combines revenue and capital expenditure, with total expenditure of Rs 2127,9627 crore, totaling 83.64% of Rs 254,43131 crore. Although Telangana’s revenue performance, especially in tax collection, showed resilience, the increase in pension and interest payments remained a problem.
