Hyderabad: Telangana is projected to accumulate 122% of the loan amount initially estimated in its budget documents by the end of the 2025-26 fiscal.By Dec 2025, the state was expected to raise approximately 65,965 crore in loans — a sharp contrast to the planned 55,116 crore. However, a positive aspect emerging from this financial scenario is the notable increase in capital expenditure (capex). The uptick suggests that the state is prioritising investments in capital projects, indicating a strategic focus on long-term growth and infrastructure development.
The state’s revenue is steadily on the rise, with increases across various tax streams compared to the previous year. As highlighted by figures from the Comptroller and Auditor General (CAG), there was significant growth in income from registration and stamps department, state excise, and non-tax revenues. However, revenue from sales tax showed a downturn, primarily due to recent reductions in GST slabs that impacted collections.The CAG’s financial landscape for Dec 2025 revealed that revenue receipts surged by an impressive 12,000 crore compared to last year, with 54.38% of the revenue target already achieved. In comparison, by Dec of the 2024-25 financial year, the state met only 50.76% of its revenue target, accumulating 1,12,307 crore, whereas the total revenue till last Dec stood at 1,24,911 crore.A noteworthy highlight is the revenue from registration and stamps department, which skyrocketed to 11,304 crore, representing 59.22% of the targeted figure. This was a substantial increase from the mere 7,524 crore recorded in the previous fiscal year. Factors contributing to this growth included the panchayat elections and the establishment of new liquor shops, which propelled the state excise revenue to 17,507 crore — an increase from 14,708 crore the previous year, marking a growth rate of 8.42%.Moreover, non-tax revenue also experienced a notable boost, climbing by 6.93% from last year to reach 7,120 crore, largely driven by income from land sales. Revenue from sales tax totalled 25,126 crore, underscoring the importance of this sector in the overall revenue framework.In terms of capital expenditure — an essential indicator of developmental progress — there was a vigorous commitment. So far, the Congress govt allocated 42,691 crore to such projects, a substantial 6,000 crore beyond the budgeted amount as of Dec. This allocation indicates a robust focus on advancing development initiatives throughout the state. To date, an impressive 116% of the allocated funds for capital expenditure was already utilised.
