Overview

• The CAG’s Q1 report showed Telangana’s own tax revenue at 16.2% of its annual target and non-tax revenue at 3.37%, while early-year borrowings reached 37.5% of the fiscal limit.
• In a Lok Sabha reply, Union MoS Pankaj Chaudhary confirmed that Telangana’s debt stood at ₹3.50 lakh crore and assets at ₹4.15 lakh crore as of March 31, 2024, and detailed the breakdown of loans.
• BRS leaders described the CAG findings as a “red alert,” accusing the Revanth Reddy government of fiscal mismanagement and rapid borrowing without matching asset creation.
• The Centre’s parliamentary data refuted Congress claims that BRS left Telangana with ₹8 lakh crore in debt, upholding a ₹3.50 lakh crore figure instead.
• Rival narratives now hinge on whether past borrowing under BRS financed productive infrastructure or whether current borrowing under Congress risks driving the state into a debt trap.