Hyderabad: The Comptroller and Auditor General (CAG) has highlighted financial mismanagement in Telangana during the last eight months of the previous Bharat Rashtra Samithi (BRS) government and the first four months of the Congress government in the 2023-2024 fiscal year.

It may be recalled here that the BRS government’s tenure ended in the first week of December 2023, with the Congress government assuming power on December 7.

Finance Minister Mallu Bhatti Vikramarka tabled the CAG report for 2023-2024 in the Assembly on Thursday.

The report revealed that the fiscal deficit exceeded 3% of the Gross State Domestic Product (GSDP), while outstanding debts and liabilities surpassed the mandated limit of 33.10% of the GSDP. It also noted a 13% increase in debt and liabilities compared to the previous year.

The CAG report pointed out that the fiscal deficit stood at `49,977 crore, or 3.33% of the GSDP, exceeding the prescribed limit of 3%. Outstanding debt and liabilities amounted to `5,15,659 crore, or 34.47% of the GSDP, surpassing the mandated limit of 33.10%. Public debt and other liabilities increased by `47,178 crore (13%) in 2023-2024 compared to the previous year, constituting 27% of the GSDP.

The report said this debt included `6,949 crore provided as back-to-back loans by the central government to compensate for GST shortfalls.

Further, the report pointed out that borrowings and liabilities amounted to `49,977 crore, significantly exceeding the budget estimate of `38,234 crore—an increase of 131% over the projected figures. Meanwhile, total revenue receipts stood at `1.69 lakh crore, falling short of the estimated `2.16 lakh crore for the fiscal year.

Expressing concerns over budget preparation the CAG raised concerns over planning, noting that the state government incurred a net excess expenditure of `1,11,477 crore—33% above the approved budget of `3,37,107 crore for 2023-2024.

In the revenue section, major excess spending was observed under Grant 11 – Fiscal Administration, Planning, Surveys, and Statistics, where expenditure reached `22,798 crore against the allocated `14,650 crore—an excess of `8,148 crore.

In the capital section, excess expenditure was noted under Municipal Administration and Urban Development, where actual spending stood at `2,640 crore against the allocated `333 crore.

The findings have sparked discussions on fiscal prudence and governance, raising concerns about the state’s financial sustainability.