Telangana's Financial Strain: Mid-Year Budget Review

Telangana state's revenue and capital receipts are significantly underperforming, reaching just over 50% of the budget targets for the current financial year. Concerns rise as tax and non-tax revenues fall short, prompting financial strain and necessitating borrowed funds. Upcoming initiatives add pressure to an already tight budget situation.

Telangana faces significant financial strain as its revenue receipts reached only 46.7% of projected targets, according to recent data. By November, the state generated Rs 1.03 lakh crore against a budget estimate of Rs 2.21 lakh crore, reflecting substantial shortfalls in both tax and non-tax revenue streams.

The Comptroller and Auditor General's report highlights a worrying trend, with total receipts amounting to just 51.5% of anticipated Rs 2.74 lakh crore. Non-tax earnings severely underdelivered at 14.82%, affecting the state's financial health and necessitating increased borrowing.

Despite the challenges, the Revanth Reddy-led government plans to meet election promises, such as launching 'Rythu Bhrosa' and other support schemes. With only four months to balance the budget, all eyes remain on the administration's financial management skills.

(With inputs from agencies.)