After six months of the financial year 2025–26, Telangana’s finances continued their slow pace of growth at the end of September 2025 with total revenue of ₹ 1.22 crore, 42.87% of the ₹ 2.84 crore projected in the budget estimates.
Tax revenue of ₹ 71,836 crore was registered at the end of September, 40.97% of the ₹ 1.75 crore estimated for the full year. Loans and other liabilities accounted for the bulk of the revenue at ₹45,139 crore, more than one-third of the ₹1.22 lakh crore, during the first six months of the fiscal.
On the revenue side, revenue of ₹ 25,411 crore was reported through GST and ₹ 9,620 crore through state excise duties.
Licensing fee for liquor stores increases
The state’s excise duties increased significantly by the end of October with the collection of over ₹6,000 crore in the form of a non-refundable bid fee for liquor outlets amounting to nearly ₹3,000 crore and another ₹3,000 crore as the first installment of retail sales excise from the successful bidders.
Revenue from the state’s share of Union taxes continued to be impressive with the state securing ₹8,927 crore out of the ₹18,384 crore projected in the budget estimates, representing 48.56%. Accruals through non-tax revenue and grants-in-aid remained sluggish at ₹ 3,107 crore (9.83%) and ₹ 1,996.77 crore (8.76%) at the end of the first half of the fiscal.
Expenses for six months
On the expenditure side, interest payment reached ₹14,370 crore, 74.19% of the ₹19,369 crore projected in the Budget Estimates, with six months to go. Expenditure on payment of pensions was another area that witnessed higher expenditure at ₹ 9,277 crore, 70.77% of the ₹ 13,109 crore budget estimates.
According to provisional data submitted to the Comptroller and Auditor General of India, the state posted a revenue deficit of ₹12,452 crore against a surplus of ₹2,738 crore projected in the Budget Estimates and the fiscal deficit during the first half was pegged at ₹45,139 crore. The state posted a primary deficit of ₹30,768 crore till the end of September, 88.82% of the ₹34,640 crore planned for the fiscal, suggesting that the primary deficit could exceed budget estimates.
Published – 07 Nov 2025 15:28 IST
