Telangana Betters Revenue Collection, Lags in Fiscal Deficit

Hyderabad: Telangana’s revenue deficit has narrowed even as the fiscal deficit widened, according to the latest Comptroller and Auditor General (CAG) report for October on Thursday. Official sources in the finance department attributed the increased fiscal deficit to higher government borrowings aimed at bridging the gap between expenditure commitments and revenue inflows.The state’s revenue deficit declined from ₹112,452.89 crore in September 2025 to ₹10,113.37 crore in October. In contrast, the fiscal deficit increased sharply from ₹45,139.12 crore to ₹50,541.22 crore during the same period. Loans taken by the government showed a corresponding rise, matching the fiscal deficit figures, reflecting a greater dependence on external borrowing. During the seven-month period from April to October, the state realised 50.95 per cent (₹1,45,124.52 crore) of total budgeted receipts of ₹2,84,837.29 crore, while 50.83 per cent (₹1,33,920.93 crore) of the total expenditure target of ₹2,63,486.74 crore was met. Official sources said, with just five months remaining in the fiscal year, the government must mobilise nearly half of both receipts and expenditure targets to stay aligned with budget estimates. Revenue receipts touched ₹94,555.97 crore, amounting to 41.16 per cent of the budget estimate of ₹2,29,720.62 crore, marginally higher than the 41.06 per cent achieved during the corresponding period of 2024-25. However, collections under stamps and registrations as well as state excise duties showed a downward trend compared to last year. GST collections remained strong at ₹30,569.02 crore, achieving 51.20 per cent of the budget target of ₹59,704.59 crore, slightly higher than the 50.39 per cent realised in 2024–25. Officials said this indicates that the first full month of GST 2.0 reforms did not negatively affect revenue inflows. Collections from stamps and registrations stood at ₹8,606.43 crore, representing 45.09 per cent of the ₹19,087.26 crore target, marginally lower than the 45.86 per cent rate recorded last year. State excise duty collections totalled ₹13,296.75 crore, reaching 48.14 per cent of the estimated ₹27,623.36 crore, compared to 42.63 per cent in the previous fiscal cycle. Borrowings have already reached 93.58 per cent of the full-year projection of ₹54,009.74 crore, with the state securing ₹50,541.22 crore in loans by October, significantly higher than the 71.30 per cent utilisation recorded in the same period of 2024–25. Expenditure obligations continued to rise, with ₹16,529.88 crore spent on interest payments, ₹27,633.13 crore on salaries and wages, ₹10,853.72 crore on pensions, and ₹9,446.95 crore on subsidies.