Tue Sep 23 12:33:40 UTC 2025: **Summary:**

Telangana’s financial struggles persist into the fifth month of the fiscal year 2025-26. Revenue receipts are significantly below budget projections, with borrowings making up a large portion of the total. Tax revenue is slightly better but still lagging. Expenditures, particularly interest payments, salaries, pensions, and subsidies, are high. The state has a revenue deficit, exceeding the projected surplus, and a substantial fiscal deficit.

**News Article:**

**Telangana’s Financial Woes Deepen as Deficit Swells**

**HYDERABAD, September 23, 2025** – Telangana’s financial difficulties continue to mount, with revenue collection falling far short of budget expectations for the fifth consecutive month of the 2025-26 fiscal year. Data released today reveals a growing deficit and heavy reliance on borrowing to meet expenses.

Total revenue receipts stood at ₹96,654 crore at the end of August, a mere 33.93% of the ₹2.84 lakh crore projected in the budget. A concerning ₹33,415 crore, or 61.87% of the permitted limit, was sourced from borrowings and other liabilities.

While tax revenue reached ₹59,967 crore (34.2% of projections), non-tax revenues remained negligible at ₹1,578 crore (4.99%). Grants in Aid and Contributions also underperformed at ₹1,673 crore (7.35%). The state’s share of Union taxes offered a bright spot, reaching ₹7,413 crore (40.32%).

Expenditure continues to strain the state’s finances. Interest payments have already reached ₹11,447 crore (59.1% of the annual projection), while salaries and wages accounted for ₹20,141 crore. Pension payments are also high at ₹7,701 crore (58.75%). The government spent ₹7,492 crore (45.84%) on subsidies, primarily for free power to the agricultural sector.

The state is now facing a revenue deficit of ₹11,051 crore, a stark contrast to the projected surplus of ₹2,738 crore. The fiscal deficit stands at a considerable ₹33,415 crore.

Analysts express concern over the state’s rising debt and its ability to meet its financial obligations if revenue collection doesn’t improve significantly in the remaining months of the fiscal year. The government is yet to comment on the latest figures and its plans to address the deepening financial crisis.

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