TG exceeds annual borrowings, interest payment targets: CAG

Hyderabad: Telanganahas exceeded its annual targets for borrowings, interest payments, and capital expenditure according to the latest CAG report for January. Official figures indicate that while the government proposed Rs 54,000 crore in borrowings for the 2025-2026 budget estimations, the state had already borrowed Rs 69,148 crore by January. This figure represents 128 per cent of the initial target.

State Finance department officials explained that the government relied heavily on these loans to meet financial requirements given the substantial debt burden. Borrowing intensified at the start of the fourth quarter in January. This trend follows the previous year when the government similarly surpassed its borrowing target at 118 per cent.

Interest payments have also climbed significantly beyond the projected Rs 19,369 crore. The CAG report confirms that the government has already paid Rs 24,085 crore in interest on borrowings, reaching 124 per cent of the target. Officials maintained that regular interest payments are essential to keep the state economy healthy, ensuring the ability to secure further credit during emergencies.

Capital expenditure also outpaced expectations, reaching Rs 44,376 crore against a target of Rs 36,504 crore, which is 121 per cent of the total goal. Conversely, spending on salaries and wages stood at Rs 39,858 crore against a target of Rs 44,474 crore, representing 89 per cent. Expenditure in the social sector remained relatively stable compared to the previous year, with Rs 67,980 crore spent against a target of Rs 1.21 lakh crore, achieving 55.97 per cent completion.

In a positive development for revenue mobilisation, property registrations saw a major increase in January. Statistics show that 64.68 per cent of the Rs 19,087 crore target was achieved, a sharp rise from the 31.94 per cent recorded in the same month last year. Officials attributed this growth to new property registrations within the Greater Hyderabad limits, spurred by the launch of the Future City project and other initiatives in the Core Urban Region.

The state government anticipates further growth in property registrations as the financial year concludes. However, the report noted a dip in sales tax growth, though revenue from liquor sales saw a slight increase. GST collections have also picked up. By the end of January, the government had earned a total revenue of Rs 1.38 lakh crore against an overall target of Rs 2.29 lakh crore, marking 60.23 per cent of the annual revenue goal.