Telangana budget decline for 2026–27; The CAG pegs the total revenue at ₹ 3.01 lakh crore

Telangana’s revenue for April in the financial year 2026-27 was ₹10,974 crore. | Photo credit: M VENKAT RAO

The amount of Telangana state budget for the financial year 2026-27 has seen a decline after the first month. The state government approved the budget with a total expenditure of ₹ 3.24 crore, including capital receipts. Capital receipts, mainly open market loans, central government loans and other loans, amount to nearly ₹80,000 crore. Of these, the government has proposed to raise ₹73,383 crore from the open market, ₹5,500 crore as loans from the Center and another ₹1,000 crore from other loans.

However, the monthly key figures released by the Comptroller and Auditor General of India put total revenue at ₹3.01 crore, with capital receipts accounting for ₹59,945 crore, including ₹58,458 crore as loans and other liabilities. This is not a new phenomenon as the state witnessed a similar reduction in budget expenditure in the previous fiscal period as well. Against the budget of ₹ 3.04 crore for 2025–26 approved by the state legislature, the total expenditure was reduced to ₹ 2.81 crore with a similar decrease in the borrowing limit.

However, the Union Finance Ministry has allowed the state to opt for borrowings of ₹77,762 crore against the ₹54,009 crore that was fixed at the start of the fiscal (2025–26). This was mainly due to the swapping of high-interest loans for low-interest loans, which led to higher borrowing limits last fiscal.

Senior officials said that the financial situation of the state remains stressful as can be seen from the receipts for the first month of the new fiscal period. The state’s revenue for April stood at ₹ 10,974 crore, while the expenditure due to the social program spree was much higher. “Revenues of around 4.5% in the first month indicate that the year has not started on a positive note. Hopefully, revenues will improve in the coming months after the onset of monsoon,” a senior official responded.

Published – 03 Jun 2026 17:33 IST