Telangana Faces Surging Pension and Salary Costs, Likely to Exceed 2025-26 Budget Estimates

Quick Summary

• Telangana’s tax revenues during the first four months (April-July) of 2025-26 fiscal stood at ₹48,145 crore,27.46% of the ₹1.75 lakh crore budget estimate.
• Total revenue receipts for April-July stood at ₹74,955 crore (26.32% of the ₹2.84 lakh crore target), including ₹24,669 crore from borrowings/liabilities.
• Non-tax revenue and grants-in-aid showed weak performance, contributing just ₹1,334 crore (4.22%) and ₹790 crore (3.47%), respectively.
• Major expenditure areas:

– Pensions: ₹6,149 crore spent out of a budgeted ₹13,109 crore; monthly average exceeds ₹1,500 crore.
– Salaries & wages: Expenditure reached ₹15,961 crore (35% of budgeted amount).
– Interest payments: Reached half-yearly levels at ₹9,355 crore (48.3% of annual projection).

• Deficits till July end:

– Revenue deficit stood at ₹12,564 crores vs a projected surplus of ₹2,738 crores for the entire year.
– Fiscal deficit hit nearly half its yearly cap at₹24‌,‌669 cr against estimated#54 thk total.

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