CAG flags improvement in Telangana revenue receipts by December 2025
HYDERABAD: The Comptroller and Auditor General (CAG) has reported a marked improvement in Telangana’s revenue position for the period ending December 2025, with receipts rising sharply compared to the same period last year, driven mainly by higher tax and non-tax collections.
According to the CAG report on state finances, total revenue receipts stood at ₹1,24,911.19 crore by December 2025, achieving 54.38 per cent of the budget estimate of ₹2,29,720.63 crore. This was higher than the 50.76 per cent achieved during the corresponding period of 2024–25.
Tax revenue remained the largest contributor, reaching ₹1,13,985.07 crore, or 65.02 per cent of the budgeted figure, compared to 62.07 per cent in the same period last year. The CAG said this reflected improved efficiency in tax mobilisation and compliance.
Goods and Services Tax collections touched ₹39,004.84 crore, accounting for 65.33 per cent of the budget estimates and marginally higher than last year. Revenue from stamps and registration rose sharply to ₹11,304.19 crore, or 59.22 per cent of the annual target, compared to 41.28 per cent earlier, indicating a revival in real estate activity and better registration processes.
State excise duties also recorded a notable increase, with collections of ₹17,507.01 crore, amounting to 63.38 per cent of the budget, up from 54.96 per cent in the previous fiscal. Sales tax and the state’s share of Union taxes continued to show steady growth, strengthening the revenue base.
Non-tax revenue stood at ₹7,120.53 crore, which was 22.52 per cent of the budget estimates, higher than the 15.59 per cent recorded during the same period last year. However, grants-in-aid and contributions remained lower at ₹3,805.59 crore, reaching only 16.7 per cent of the annual projection, compared to 22.05 per cent earlier.
Capital receipts exceeded expectations, with ₹65,965.32 crore realised against a budget estimate of ₹55,116.67 crore, reflecting an achievement of 119.68 per cent. This was largely on account of borrowings and other liabilities, which stood at ₹65,930.31 crore, surpassing the annual target and highlighting the government’s reliance on market borrowings to finance expenditure.
On the expenditure side, total spending reached ₹1,77,204.16 crore, or 67.25 per cent of the budgeted amount, higher than 61.87 per cent last year. Revenue expenditure accounted for ₹1,34,512.21 crore, with major components including salaries and wages of ₹35,746.99 crore, interest payments of ₹21,454.17 crore and pensions of ₹14,126.99 crore.
Capital expenditure recorded a strong performance at ₹42,691.95 crore, achieving nearly 117 per cent of the budget estimate, reflecting the state’s focus on infrastructure and asset creation. Sector-wise analysis showed higher utilisation in the general and economic sectors, while social sector expenditure remained moderate.
The state reported a revenue deficit of ₹9,601.02 crore by December 2025, against a surplus projected earlier, while the fiscal deficit stood at ₹65,930.31 crore. The CAG observed that despite improved revenue collections, rising expenditure and higher borrowings continued to put pressure on Telangana’s finances.
