Hyderabad: Telangana’s revenue and fiscal deficits further expanded by fiscal year 2024-25, hitting Rs 28,132 crore and Rs 64,444 crore respectively by fiscal year 2024-25, according to a report released by Auditor and Auditor (CAG) on Wednesday. The surge in income deficits is attributed to increased government spending on existing loans, wages, pensions and interest payments.
By comparison, the state’s revenue deficit was Rs 2605 crore and its fiscal deficit was Rs 58,586 crore at the end of January 2025, indicating a significant increase in a month. The report notes a mismatch between the state’s earnings and its growing financial commitments.
In its budget estimate for 2024-25, the Telangana government expects revenue surplus of Rs 297 crore for the entire fiscal and a fiscal deficit of Rs 492555 crore. However, actual data by the end of February showed that the revenue deficit and fiscal deficit had exceeded the budget target.
By the end of February, the state had a total revenue expenditure of Rs 164,268 crore, while its revenue was only Rs 136,136 crore. The main expenditure components include Rs 38,962 crore in salary, Rs 15,480 crore in pension, subsidy of Rs 12,291 crore, and interest on loans of Rs 24,078 crore.
In terms of revenue, the government received Rs 1,24,054 crore in tax revenue and Rs 6,071 crore in non-tax revenue and received a grant of Rs 60,099 crore as a grant from the centre. Of the tax revenue, GST paid Rs 46,440 crore, business tax of Rs 29,238 crore, central tax of Rs 17,243 crore, consumption tax of Rs 16,800 crore, stamps and registration amounts of Rs 70,33 crore.
