Hyderabad: BRS MLC Sravan Dasoju warned that Telangana faced rising fiscal strain as revenue growth slowed and borrowings increased sharply. He said the state moved towards financial stress due to administrative inexperience, policy delays, and inconsistent fiscal planning. He cited Finance Accounts up to September 2025 and recent CAG observations to support his concerns.
Revenue trends, he said, showed clear stagnation during the first half of 2025–26. The state achieved only 33.49% of its annual revenue target, compared with 34.10% during the same period last year. Tax revenue reached 40.97% of the Rs. 1.75 lakh-crore estimate. State GST collections stood at 42.56%, marginally higher than 42.21% last year. Sales tax touched 44.65%, while state excise reached 34.83%. Stamps and registration recorded 38.85%. He added that the ‘other taxes’ category dropped to 28.63% from 37.72%.
Non-tax revenue reached only 9.83% of the Rs. 31,618.77-crore estimate. Central grants accounted for 8.76%, down from 11.31% in the previous year. He said the persistent slowdown reflected gaps in administrative coordination and fiscal strategy.
State borrowing rises amid widening deficits, says Sravan Dasoju
The state borrowed Rs. 45,139 crore by September 2025, amounting to 83.58% of the annual borrowing ceiling. The fiscal deficit also reached Rs. 45,139 crore, or 84% of the budgeted Rs. 54,010 crore. He compared this with 66% during the same months of the previous year to highlight the deterioration. The revenue deficit more than doubled to Rs. 12,452 crore from Rs. 5,296 crore. The primary deficit stood at Rs. 30,768 crore, compared with Rs. 21,326 crore last year. He said public debt reached Rs. 3.48 lakh crore by August 2025, excluding off-budget liabilities.
Sravan argued that the state now depended heavily on borrowings to manage day-to-day expenditure instead of using loans for productive investments. This, he said, increased future risks.
Government spending patterns indicated further strain. Revenue expenditure touched 39.83% of the annual target. Interest payments reached 74.19%. Salaries and pensions accounted for 57.72%, compared with 55.45% last year. He said serving employees saw gains while pensioners continued to face delays.
Subsidies reached 49.70%, and capital expenditure stood at 60.90%. He said the government announced no major infrastructure projects despite a considerable capital outlay.
Sravan criticised the government for relying on slogans such as “Musi Revival”, “Future City”, and “Telangana Rising”. He said these initiatives lacked structural planning in education, healthcare, civic infrastructure, industry, and public safety.
He warned that Telangana, once seen as fiscally disciplined, now faced institutional and administrative weaknesses. He called for responsible governance, improved wealth creation, and balanced welfare to restore fiscal stability and public confidence.
