Telangana Faces Financial Struggles as Revenue Falls Short
Telangana is currently facing a financial crisis due to lower-than-expected revenue generation in the first three quarters of the 2024-2025 financial year. Despite efforts to boost income, the state government has struggled to meet its revenue targets.
In the first eight months of the financial year (up to November), the state managed to achieve only 46.7% of its revenue receipts, collecting Rs 1.03 lakh crore. This is far below the budget estimate of Rs 2.21 lakh crore, raising concerns about financial stress in the coming months.
A report by the Comptroller and Auditor General (CAG) revealed that the total receipts, including revenue and capital, reached only 51.5% of the target. The state collected Rs 1.41 lakh crore, compared to the budget estimate of Rs 2.74 lakh crore.
Non-tax revenues were particularly disappointing, with the state collecting just 14.82% of the target. Against a goal of Rs 35,208 crore, only Rs 5,217 crore was generated, significantly impacting overall performance. Meanwhile, capital expenditure stood at Rs 21,000 crore, which is 62.2% of the budgeted Rs 33,500 crore.
The state also borrowed Rs 37,850 crore by November, utilizing 71.7% of the borrowing limit of Rs 49,255 crore for the year. With only three months left in the financial year, it remains uncertain if the government can meet its financial goals.
To address the shortfall, the government has started selling valuable government lands and mortgaging them to raise funds. A prominent private bank recently provided a Rs 9,000 crore loan by accepting a piece of land in Hyderabad as collateral. These funds are expected to support the Rythu Bharosa scheme, which is set to launch after the Sankranti festival in January.
