CAG flags ₹2.63 lakh crore Telangana expenditure, highlights lapses in Osmania University and welfare schemes
HYDERABAD: The Comptroller and Auditor General of India (CAG) submitted the Compliance Audit Report (Report No. 3 of 2025) for the period ended March 2022 to the Governor of Telangana under Article 151 of the Constitution. The report highlights financial, operational, and administrative lapses across government departments, public sector undertakings (PSUs), universities, and welfare schemes.
High expenditure in general and social sectors
The Government of Telangana spent ₹2,62,977.94 crore in 2021-22 across general, social, and economic sectors. Notably, the Finance Department accounted for the highest expenditure in the general sector at ₹1,21,329.42 crore. Meanwhile, the Scheduled Castes Development Department spent ₹14,439.01 crore in the social sector.
Osmania University audit flags staffing and infrastructure gaps
Audit findings revealed a decline in Osmania University’s national ranking, from 38th in 2017 to 64th in 2023. Its overall university ranking fell from 23rd to 36th. Moreover, teaching staff shortages rose from 26% in 2017-18 to 38% in 2021-22. Non-teaching vacancies stood at 34%, leaving 1,091 posts unfilled as of March 2023.
Additionally, a new academic building at the University PG College, Secunderabad, completed in June 2019 at ₹10.70 crore, remained unused. The university also failed to collect ₹7.07 crore in lease rentals from TRANSCO and TSSPDCL, and lost ₹1.49 crore due to non-revised rental charges.
AMRUT projects reveal financial and asset management lapses
The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2015-20 included 66 approved projects worth ₹1,666.26 crore. However, audit identified irregular payments of ₹35.40 crore for inadmissible works and excess payments of ₹3.71 crore for price adjustments. Further, assets in cities like Karimnagar and Ramagundam were not officially handed over to local bodies for over a year after completion.
Welfare schemes show irregularities
The Kalyana Lakshmi Pathakam scheme disbursed ₹4,708.57 crore to 5,21,946 beneficiaries between 2019-22. Audit detected 676 cases of multiple marriages and 7,314 instances where delivery preceded marriage. These irregularities involved ₹72.91 crore in payments.
Similarly, civil supplies records showed subsidised rice worth ₹135.16 crore went to 83,545 ineligible or deceased persons. During 2020-22, 58,225 households drew 37,676.233 MT of rice.
PSUs and infrastructure lapses
The Telangana State Industrial Infrastructure Corporation (TSIIC) allotted 511 acres to M/s Vem Technologies Private Limited, though only 49 acres were required. This caused a revenue loss of ₹106.91 crore. In addition, IALA Madhapur extended ₹105.91 crore in undue tax benefits to IT firms.
Four power sector PSUs failed to recover ₹20.15 crore in TDS on employee terminal benefits from 2014-21. Meanwhile, TSRTC spent ₹22.04 crore on 100 Vajra buses, which remained non-operational after two years and seven months.
Finally, 17 road works and two bridge works under PMGSY remained incomplete due to forest clearance issues. Rural road maintenance expenditure also fell 57.55%, from ₹202.29 crore in 2017-18 to ₹85.88 crore in 2020-22.
