Hyderabad, June 1: Telangana’s borrowings exceeded its revenue collections in April 2026, highlighting growing pressure on the state’s finances. According to the latest Comptroller and Auditor General (CAG) report, the state government raised Rs 11,413.93 crore through market borrowings, while total revenue receipts stood at Rs 10,974.73 crore.
The figures indicate that the government borrowed nearly Rs 108 for every Rs 100 earned through taxes and other revenue sources during the month.
Telangana Fiscal Deficit Reaches Rs 11,413 Crore
The state’s tax revenue during April was Rs 10,598.33 crore, which was lower than both the borrowings raised and the Rs 10,916.68 crore collected during the same month last year.
Tax collections included Rs 3,155 crore from GST, Rs 2,923 crore from sales tax, Rs 1,445 crore from state excise duties, Rs 1,413 crore from stamps and registrations, and Rs 1,260 crore as the state’s share in central taxes.
The CAG report showed that Telangana recorded a revenue deficit of Rs 8,526.59 crore in April, indicating that revenue receipts were insufficient to meet revenue expenditure. This comes despite the state budget projecting a revenue surplus of Rs 6,857.76 crore for the financial year.
The fiscal deficit stood at Rs 11,413.93 crore, matching the amount raised through borrowings. Borrowings accounted for more than half of the state’s total receipts of Rs 22,392.28 crore during the month.
The government spent Rs 21,472.31 crore in April. Revenue expenditure alone reached Rs 19,501.32 crore. Major spending included salaries of Rs 4,449.24 crore, pensions of Rs 1,893.11 crore, interest payments of Rs 2,350.90 crore and subsidies worth Rs 4,727.38 crore.
Capital expenditure was limited to Rs 1,970 crore against the annual budget estimate of Rs 47,267 crore.
The report suggests that Telangana’s dependence on debt-funded spending has continued into the 2026-27 financial year. The figures assume significance as the state prepares to launch the second phase of the Indiramma Illu housing scheme and other welfare initiatives on Telangana Formation Day.
While one month does not determine the entire fiscal year’s performance, the April figures provide an early indication of the challenges facing the state’s finances. Economists and policymakers are likely to closely monitor revenue mobilisation and borrowing trends in the coming months.
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