Hyderabad: According to the most recent Comptroller and Auditor General (CAG) report for October released on Thursday, Telangana’s revenue deficit has decreased while the fiscal deficit has increased. Higher government borrowings intended to close the gap between spending commitments and revenue inflows were cited by official sources in the finance department as the cause of the growing fiscal deficit. From ₹112,452.89 crore in September 2025 to ₹10,113.37 crore in October, the state’s revenue deficit decreased. On the other hand, during the same period, the fiscal deficit increased significantly from ₹45,139.12 crore to ₹50,541.22 crore. Loans taken by the government showed a comparable rise, matching the fiscal deficit data, showing a higher dependency on foreign borrowing.
The state realized 50.95 percent (₹1,45,124.52 crore) of the overall planned receipts of ₹2,84,837.29 crore during the seven-month period from April to October, and 50.83 percent (₹1,33,920.93 crore) of the total spending target of ₹2,63,486.74 crore. With only five months left in the fiscal year, the government needs to mobilize about half of its targets for both receipts and expenditures in order to stay within budget predictions, according to official sources.
Revenue receipts reached ₹94,555.97 crore, or 41.16 percent of the budget projection of ₹2,29,720.62 crore. This is somewhat more than the 41.06 percent attained during the same time in 2024–2025. However, compared to the previous year, collections under state excise fees, stamps, and registrations showed a declining tendency. At ₹30,569.02 crore, GST revenues were nevertheless high at 51.20 percent of the budget target of ₹59,704.59 crore, which was marginally higher than the 50.39 percent realized in 2024–2025. According to officials, this suggests that revenue inflows were not adversely affected by the first full month of GST 2.0 adjustments.
Stamp and registration collections totaled ₹8,606.43 crore, or 45.09 percent of the ₹19,087.26 crore target. This is somewhat less than the 45.86 percent rate from the previous year. Compared to 42.63 percent in the previous fiscal cycle, state excise duty revenues totaled ₹13,296.75 crore, or 48.14 percent of the expected ₹27,623.36 crore. The state secured ₹50,541.22 crore in loans by October, a substantial increase over the 71.30 percent utilization achieved in the same time of 2024–2025. Borrowings have already reached 93.58 percent of the full-year forecast of ₹54,009.74 crore. 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, expenditure commitments kept rising.
Telangana Lags in Fiscal Deficit Despite Improving Revenue Collection
