Hyderabad: T. Harish Rao said the CAG report exposed Telangana fiscal failure under the government led by A. Revanth Reddy, citing weak budget execution and financial mismanagement.
He said the findings reflected unrealistic budgeting and administrative lapses. Moreover, he added that the report supported concerns raised by BRS over poor fiscal planning and implementation.
He said the government weakened financial discipline within two years and three months. As a result, he stated that the situation pushed the state into a risky economic position.
Telangana fiscal failure reflected in budget gaps and deficit
Harish Rao said the government’s claim of a realistic 2024–25 budget did not match actual spending. It set estimates at ₹2,21,242 crore, but it spent only ₹1,67,804 crore. Thus, it achieved just 76% of planned expenditure.
Similarly, the government projected revenue expenditure at ₹2,20,945 crore. However, it spent ₹1,77,224 crore, which equals 80% of the estimate. Therefore, he said the gap between projections and actuals showed serious fiscal strain.
He described the shift in revenue position as alarming. Telangana recorded a surplus of ₹779 crore in 2023–24. However, it moved to a deficit of ₹9,420 crore in 2024–25. Consequently, he said this decline highlighted the scale of the problem.
“This is a complete collapse of financial management. BRS handed over a surplus state, but it has now become a deficit state,” he said.
He also pointed to excess spending across sectors. The government spent ₹31,229 crore beyond allocations in seven grants and two appropriations. In the revenue segment alone, it overspent by ₹10,525 crore. Hence, he said this further indicated weak fiscal control.
He added that the government breached its FRBM target. It fixed debt at 32.80% of GSDP, but it rose to 34.29%. As a result, total debt climbed to ₹5,62,662 crore.
Finally, Harish Rao said these trends affected economic confidence. Moreover, he added that sectors such as business, real estate and industry had suffered.
