TG’s revenue deficit skyrockets to Rs 12,564 cr in 4 months

Hyderabad: The State is witnessing a deep fiscal crisis in the 2025-2026 financial year. The increasing revenue and fiscal deficits has already been a big worrying factor to the state in just the first four months of the current financial year.

The CAG report disclosed the government has projected Rs 2,738 crore revenue surplus in the budget estimations for the current financial year. But the State is already reeling under a revenue deficit of a whopping Rs 12,564 crore during the first four months of the financial year. The government also projected a fiscal deficit of Rs 54,009 crore and it already touched Rs 24,669 crore till the date.

The revenue deficit was more or less the same in the first four months of the current and last financial year. The revenue deficit was 28. 72 per cent as against 23.56 pre cent in the corresponding year. Officials said that the increasing scheme expenditure and the payment of heavy interest on the loans landed the government in the financial crisis. To achieve the revenue surplus and overcome the fiscal deficit, the government would have to take a slew of financial disciplinary measures. It would be a big challenge to balance the growing expenditure and the fiscal management with the limited revenue sources mainly due to a slow growth in achieving the revenue targets every month.

The state government was relying more on borrowings to meet the financial requirements instead of increasing revenues from the State Owned Tax (SOTR) and non tax revenue resources. In the current financial year , the government has already borrowed the highest amount of Rs 24,669 crores in just four months . The revenue receipts are just Rs 50,700 crore which is 21 per cent of the total revenue target of Rs 2.29 lakh crore this year.

Despite making all out efforts to generate huge revenues, officials , the latest CAG report found that the government could achieve a slight growth in revenue generation of 21.88 per cent in the last four months as against 21.57 per cent last year. The Cabinet Sub committee on mobilization of resources brought several reforms to increase SOTR and on tax revenues but failed to achieve desirable results. Except GST and Excise, the revenues from Stamps and Registration and Sales tax witnessed a fall in revenue generation.

Though the government borrowed huge funds, the capital expenditure was low when compared to last year during the first four months of the financial year. Out of Rs 36,504 crore estimation of capital expenditure , the government could spend only Rs 5,990 crore ( 16.40 per cent ) . Last year, it was 22. 77 per cent.

In the revenue expenditure, the report disclosed that expenditure on interest payments and subsidies increased and spending on pensions reduced. The government has paid Rs 9355 crore on interest payments which was 48 per cent of the total Rs 19,369 crore for this year. The total revenue expenditure in the general sector was only 41 per cent as against43,81 per cent in the corresponding period last year. Officials warned that if the state witnesses a slowdown in revenue generation, it could create a big financial crisis in the next eight months of the current financial year.