Telangana’s revenue crosses ₹1.22 lakh crore in H1 FY26
HYDERABAD: The Comptroller and Auditor General (CAG) has reported that Telangana’s total revenue for the first half of the 2025–26 financial year has crossed ₹1.22 lakh crore, marking an increase of ₹14,000 crore over the same period last year.
The report attributes the growth largely to higher tax collections and new borrowings. Revenue expenditure stood at ₹1.11 lakh crore, up from ₹1.01 lakh crore in the first half of 2024–25.
Borrowings drive income surge
While tax revenues rose by ₹2,913 crore, the state raised an additional ₹12,626 crore through fresh loans. This led to a corresponding rise in expenditure, the CAG said.
Of the ₹1.11 lakh crore spent, a major portion went towards salaries, pensions, loan repayments and interest. Welfare schemes and subsidies also contributed to the increased outlay.
Fiscal deficit widens to ₹45,139 crore
Despite higher revenues, the fiscal deficit expanded to ₹45,139 crore in the first six months. To bridge the gap, the government relied heavily on new borrowings.
Although the budget had projected a revenue surplus of ₹2,738 crore for the year, the state instead recorded a revenue deficit of ₹12,452 crore by September, a negative deviation of 454%, the CAG said.
Capital expenditure, however, saw a sharp rise, indicating greater focus on development projects.
