Sravan Dasoju flags fiscal risks as Telangana revenue slows

Hyderabad: BRS MLC Sravan Dasoju flagged growing fiscal risks for Telangana, citing slow revenue growth, sharp increases in borrowings, and widening deficits. He said the state faced mounting financial pressure due to inexperienced administration and a lack of clear policy direction. He referred to Finance Accounts up to September 2025 and the latest CAG findings to support his observations.

He said the state achieved 33.49% of its annual revenue target during the first half of 2025–26, compared with 34.10% during the same months last year. Tax revenue touched 40.97% of the Rs. 1.75 lakh-crore projection. State GST collections reached 42.56%, slightly above 42.21% recorded last year. Sales tax climbed to 44.65%. State excise registered 34.83%. Stamps and registration saw 38.85%. He said ‘other taxes’ fell to 28.63% from 37.72%.

Non-tax revenue reached only 9.83% of the Rs. 31,618.77-crore estimate. Central grants touched 8.76%, down from 11.31% during the previous year. He said these figures reflected persistent gaps in planning and coordination across departments.

Borrowing increases place added pressure, says Sravan Dasoju

The state borrowed Rs. 45,139 crore by September 2025, amounting to 83.58% of the total annual borrowing ceiling. The fiscal deficit reached Rs. 45,139 crore, or 84% of the budgeted Rs. 54,010 crore. He noted that the comparable figure stood at 66% last year. The revenue deficit widened to Rs. 12,452 crore, from Rs. 5,296 crore. The primary deficit touched Rs. 30,768 crore, compared with Rs. 21,326 crore during the previous year. Public debt stood at Rs. 3.48 lakh crore by August 2025, excluding off-budget liabilities.

He said the state depended on borrowings for routine expenditure instead of using loans for development-focused activities. This, he said, exposed the state to long-term fiscal risks.

Government spending trends further highlighted the strain. Revenue expenditure reached 39.83% of the target. Interest payments recorded 74.19%. Salaries and pensions reached 57.72%, compared with 55.45% last year. He said regular employees benefited while pensioners continued to face delays in payments.

Subsidies reached 49.70%, while capital expenditure touched 60.90%. He said the government announced no major infrastructure projects despite a substantial capital allocation.

Sravan criticised the government for promoting slogans like “Musi Revival”, “Future City”, and “Telangana Rising” without addressing structural gaps in education, healthcare, civic services, industry, and law and order.

He warned that Telangana, once known for prudent fiscal management, now faced administrative and institutional challenges. He called for stronger fiscal discipline, improved wealth creation, and targeted welfare to restore stability and public confidence.