A Comptroller and Auditor General report tabled in the Telangana assembly highlighted the state's strained finances in 2024-25, including budget underutilisation, poor revenue collection and rising debt. The government spent only 80% of its projected revenue and capital expenditure budget.
The Comptroller and Auditor General (CAG) report, tabled in the Telangana assembly on Monday, depicted strained public finances in the state for the 2024-25 financial year, citing underutilisation of budget, poor revenue mobilisation, rising debt and irregularities in tax administration.
The government projected ₹2,74,058 crore for revenue and capital expenditure but spent ₹2,18,251 crore, or 80% of the estimate. Revenue expenditure was ₹1,77,224 crore against a projection of ₹2,20,945 crore, also 80%. Capital outlay overshot at ₹36,072 crore versus ₹33,487 crore budgeted, reaching 108%.
Interest payments exceeded estimates, with ₹27,803 crore paid against ₹17,730 crore projected. Salaries and allowances cost ₹30,277 crore, surpassing the ₹28,093 crore budget. Revenue receipts fell short at ₹1,67,804 crore from an expected ₹2,21,242 crore (76%), with non-tax revenue at 67% and central grants at just 37% of targets.
A projected revenue surplus of ₹297 crore turned into a ₹9,420 crore deficit. Fiscal deficit stayed near projections at ₹48,922 crore, bridged by ₹65,537 crore in open market borrowings, pushing total outstanding debt to ₹4,47,493 crore. State guarantees rose to ₹2,41,528 crore after issuing ₹57,305 crore during the year.
