– State’s own tax revenue reached only 16.2% of its annual target.
– Non-tax revenue stands at just 3.37%.- Borrowings have already hit 37.5% of the annual limit within three months.
The fiscal concerns highlighted by the CAG report raise serious questions about Telangana’s financial management under Congress rule during Q1 FY2025-26. Limited tax revenue generation coupled with high borrowings indicates potential budgetary strain as expenditures outpace income, leaving little room to fund developmental priorities or pre-election promises.
BRS leader Dasoju Sravan’s criticism adds a layer of political tension but also reflects genuine economic challenges faced by political transitions in governance models or priorities post-elections-issues common to state-level governments shifting between parties with differing agendas.
For Telangana, addressing this fiscal imbalance while maintaining public confidence will require clarity on revenue-enhancement strategies, debt management plans, and transparency on policy focus areas moving forward.