Telangana’s half-year accounts: a Rs 15,096 crore revenue deficit where a surplus was budgeted

Telangana budgeted for a revenue surplus of Rs 6,858 crore in the first six months of 2026-27. The state accounts for April to September show a revenue deficit of Rs 15,096 crore instead.

A revenue deficit means the state spent more on its running costs, such as salaries, pensions, interest and subsidies, than it earned in taxes and other revenue. Here, revenue expenditure came to about Rs 1.07 lakh crore against revenue receipts of Rs 92,013 crore. The gap is the deficit.

What came in

Receipts were not weak in themselves. They rose 19.6 per cent from Rs 76,941 crore in the same months a year earlier. Tax revenue reached Rs 82,553 crore, up 14.9 per cent, with GST contributing Rs 29,565 crore. That is 45.52 per cent of the tax target for the whole year.

The shortfall sits elsewhere. Non-tax revenue was Rs 5,754 crore, about 16 per cent of the year’s estimate of Rs 35,730 crore, and grants-in-aid were Rs 3,706 crore, 15.34 per cent of their estimate.

What went out

Interest payments were Rs 16,565 crore, which is 77.76 per cent of the Rs 21,304 crore set aside for the full year. Pensions took Rs 14,235 crore, 96.6 per cent of the year’s Rs 14,737 crore. Subsidies stood at Rs 10,298 crore, 56.88 per cent of the annual provision.

Net borrowing was Rs 44,612 crore, roughly three-quarters of the year’s borrowing estimate of Rs 58,458 crore. Deduct interest and what remains is a primary deficit of Rs 28,047 crore.

Our view

A six-month account is not the year’s verdict, and some receipts arrive late. Even so, the pension line deserves attention. If it continues at this rate, the year’s provision will be used up long before March, and interest is moving the same way. Those are the two items the Budget will have to find more money for.