Sun Feb 23 13:19:04 UTC 2025: **Telangana Faces Budgetary Crunch as Revenue Falls Short of Targets**
Hyderabad, February 23, 2025 – The Telangana state government is facing a significant budgetary challenge as it prepares for the 2025-26 fiscal year. With just over a month left in the current fiscal year, revenue receipts have reached only ₹1.82 lakh crore, falling significantly short of the budgeted ₹2.74 lakh crore (66.57%). This shortfall is creating concerns about the state’s ability to fund crucial welfare schemes and projects.
The shortfall is particularly acute in non-tax revenue (16.66% of the target) and grants (23.93% of the target). While revenue from sources like GST and sales tax performed relatively well, the overall deficit is substantial. The state has already borrowed ₹58,586 crore, nearly one-third of its total receipts, to address the gap.
Significant expenditures are looming, including ₹20,000 crore for the Rythu Bharosa farmer support scheme, ₹15,000 crore for farm subsidies (including free electricity), and substantial amounts for salaries, pensions, and interest payments. The interest payment alone has already exceeded the budget estimate.
The situation is further complicated by the perceived lack of support from the central government, which allegedly neglected to allocate sufficient funds for key Telangana projects in the recently presented Union budget. Despite repeated appeals from Chief Minister A. Revanth Reddy and his cabinet, including requests for funding for the Regional Ring Road, the state’s borrowing capacity has also been restricted due to past borrowing levels.
Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka is holding pre-budget meetings to assess departmental needs and plan allocations accordingly. The government faces the difficult task of balancing committed expenditures with the continuation of vital welfare programs amidst this significant revenue shortfall.
First Piper 