Telangana’s revenue receipts reaches 43% of FY 2025-26 estimates in 6 months

Six months into the financial year 2025-26, slow pace of growth in the Telangana’s finances continued at the end of September, 2025, with total revenue receipts standing at ₹1.22 lakh crore, 42.87% of the ₹2.84 lakh crore projected in the budget estimates.

Tax revenue of ₹71,836 crore was registered at September end, 40.97% of the ₹1.75 lakh crore estimated for the entire year. Borrowings and other liabilities constituted a major chunk of the revenue receipts at ₹45,139 crore, more than one third of the ₹1.22 lakh crore, during the first six months of the fiscal.

On the revenue receipts side, receipts of ₹25,411 crore was reported through Goods and Services Tax and ₹9,620 crore through state excise duties.

Liquor stores licence fee gives a boost

The State Excise duties rose significantly by October end with collection of over ₹6,000 crore in the form of non refundable fee for bidding for liquor outlets fetching close to ₹3,000 crore and another ₹3,000 crore as the first instalment of the retail sales excise tax from the successful bidders.

Revenue through the State’s share of Union Taxes continued to be impressive with the State securing ₹8,927 crore of the ₹18,384 crore projected in the budget estimates, constituting 48.56%. Accruals through non tax revenue and grant in aid and contributions remained sluggish at ₹3,107 crore (9.83%) and ₹1,996.77 crore (8.76%) respectively at the end of the first half of the fiscal.

Expenditure in six months

On the expenditure side, interest payment reached ₹14,370 crore, 74.19% of the ₹19,369 crore projected in the budget estimates, with six more months still to go. Expenditure on pension payment has been another area which witnessed higher outgo at ₹9,277 crore, 70.77% of ₹13,109 crore of the budget estimates.

According to the provisional figures submitted to the Comptroller and Auditor General of India, the State reported revenue deficit of ₹12,452 crore as against surplus of ₹2,738 crore projected in the budget estimates and the fiscal deficit during the first half was pegged at ₹45,139 crore. The State reported a primary deficit of ₹30,768 crore by September end, 88.82% of the ₹34,640 crore projected for the fiscal indicating that primary deficit could cross the budget estimates.