Telangana is heading for a significant financial shift. The state now projects it will accumulate 122% of the loan amount originally estimated in its budget documents by the end of the 2025-26 fiscal year. This marks a substantial increase from initial plans.
Loan Figures Show Sharp Contrast
By December 2025, Telangana expected to raise approximately 65,965 crore rupees in loans. This figure stands in sharp contrast to the planned 55,116 crore rupees. The difference highlights changing financial dynamics within the state's economic planning.
Capital Expenditure Takes Center Stage
A positive development emerges from this financial scenario. The state shows a notable increase in capital expenditure, commonly called capex. This uptick suggests Telangana is prioritizing investments in capital projects. It indicates a strategic focus on long-term growth and infrastructure development.
The Congress government has demonstrated vigorous commitment to capital expenditure. So far, they allocated 42,691 crore rupees to such projects. This amount represents a substantial 6,000 crore rupees beyond the budgeted allocation as of December. To date, an impressive 116% of allocated funds for capital expenditure has already been utilized.
Revenue Shows Steady Growth
Telangana's revenue continues to rise steadily. Increases appear across various tax streams compared to the previous year. Figures from the Comptroller and Auditor General, known as CAG, highlight significant growth in specific areas.
The CAG's financial landscape for December 2025 revealed that revenue receipts surged by an impressive 12,000 crore rupees compared to last year. The state achieved 54.38% of its revenue target already. In comparison, by December of the 2024-25 financial year, Telangana met only 50.76% of its revenue target.
Registration and Stamps Department Leads Growth
Revenue from the registration and stamps department skyrocketed to 11,304 crore rupees. This amount represents 59.22% of the targeted figure. It shows a substantial increase from the mere 7,524 crore rupees recorded in the previous fiscal year.
Several factors contributed to this growth. Panchayat elections played a role. The establishment of new liquor shops also propelled state excise revenue to 17,507 crore rupees. This marked an increase from 14,708 crore rupees the previous year, showing a growth rate of 8.42%.
Mixed Performance Across Revenue Streams
Non-tax revenue experienced a notable boost as well. It climbed by 6.93% from last year to reach 7,120 crore rupees. Income from land sales largely drove this increase.
However, revenue from sales tax showed a downturn. Recent reductions in GST slabs primarily impacted collections. Despite this, revenue from sales tax still totaled 25,126 crore rupees. This figure underscores the importance of this sector in Telangana's overall revenue framework.
By December of the 2024-25 financial year, the state accumulated 1,12,307 crore rupees in total revenue. The total revenue until last December stood at 1,24,911 crore rupees. These numbers paint a picture of evolving financial health.
Telangana's financial story contains both challenges and opportunities. While loan accumulation exceeds projections, strategic investments in capital projects suggest forward-looking planning. Revenue growth across multiple streams, despite GST-related setbacks, indicates underlying economic strength.
