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CAG Half-Year Audit Shows Telangana’s Fiscal Deficit Nears Annual Borrowing Cap

Weak receipts alongside high recurring costs leave limited fiscal room.

Overview

  • By September, the fiscal deficit reached ₹45,139.12 crore, already about 83.6% of the full-year borrowing plan of ₹54,009.74 crore.
  • Telangana posted a ₹12,452.89 crore revenue deficit in the first half, diverging from a budgeted revenue surplus of ₹2,738.33 crore for 2025–26.
  • Revenue receipts totaled ₹76,940 crore, roughly 33.5% of the annual projection, with tax revenue contributing ₹71,836.66 crore.
  • Borrowings in April–September matched the fiscal deficit at ₹45,139.12 crore, signaling heavy reliance on debt to fund operations.
  • Debt service and routine outlays stayed elevated, including ₹14,370.64 crore in interest, ₹23,953.64 crore for salaries, and subsidies of ₹8,123.93 crore, while capital spending reached ₹22,209.20 crore—about 60% of the yearly target—with GST and stamp receipts improving but sales tax and excise declining.