Telangana revenue receipts fall short of budget projections, RBI figures show

Telangana’s actual revenue receipts fell below the state government’s budget projections in each of the three financial years from 2022-23 to 2024-25, figures cited from a Reserve Bank of India report show. The RBI included the figures in a report on recommendations for increasing the Ways and Means Advances limit for states. Telangana recorded revenue receipts of ₹1.59 lakh crore in 2022-23, ₹1.69 lakh crore in 2023-24 and ₹1.67 lakh crore in 2024-25.

Those totals were substantially below the amounts projected in the respective budgets. The state had estimated receipts of ₹1.93 lakh crore in 2022-23, leaving a gap of ₹34,000 crore. In 2023-24, the estimate was ₹2.16 lakh crore against actual receipts of ₹1.69 lakh crore.

The 2024-25 estimate was ₹2.21 lakh crore, compared with realisations of ₹1.67 lakh crore. The figures indicate that collections have repeatedly fallen short of initial expectations. The differences were particularly marked in grants-in-aid and contributions, which include assistance for operational or capital spending and measures intended to address resource gaps.

Telangana had budgeted ₹41,002 crore in grants-in-aid and contributions for 2022-23, but realised ₹13,179 crore. In 2023-24, actual receipts were ₹9,934 crore against an estimate of ₹41,259 crore. The following year, the state received ₹7,913 crore compared with a projection of ₹21,636 crore.

Non-tax revenue was another area where receipts failed to meet estimates. In 2022-23, the state collected ₹23,608 crore against a projection of ₹35,208 crore. The source material says the gap continued in the following two financial years, although it was smaller.

The figures were reported in the context of the RBI’s assessment of state finances and borrowing-related limits. The material does not provide an explanation from the Telangana government for the shortfalls.