Hyderabad: After the Centre, it is the turn of the Comptroller and Auditor General (CAG) report to effectively dismantle the Congress government’s allegations that the previous BRS regime had pushed Telangana into excessive debt. As per the actual expenditure, the total outstanding debts and liabilities of Telangana stood at Rs 5.24 lakh crore as of March 31, 2024, the report, tabled in the Assembly on Thursday reveals.
This includes Rs 4,03,664 crore of budgetary borrowings, Rs 1,20,944 crore in off-Budget borrowings obtained by corporations and special purpose vehicles under the State government guarantees and also Rs 6,949 crore, which was extended by the Union government as back-to-back loans to compensate for the GST shortfall caused by the Covid-19 pandemic and subsequent economic slowdown.
Ironically, the total outstanding debts include the loans obtained by the Congress government between December 2023 and March 2024, after coming to power in December 2023. The report, tabled in the Assembly after auditing, provides a detailed breakdown of Telangana’s financial standing, debunking the allegations of fiscal mismanagement. While the budgetary borrowings comprise 27 per cent of the Gross State Domestic Product (GSDP), the total liabilities including off-Budget borrowings account for 34.57 per cent of the GSDP.
The CAG report also indicates that the BRS government prioritised capital expenditure over revenue spending. Between 2019-20 and 2023-24, a significant portion of borrowed funds was allocated to infrastructure and development projects, contradicting Congress’ claims of reckless borrowing. The report states that in 2019-20, Rs 25,559 crore of Rs 38,285 crore borrowed was spent on capital projects.
Similar trends were observed in subsequent years: Rs 26,790 crore of Rs 47,132 crore in 2020-21, Rs 28,883 crore of Rs 46,995 crore in 2021-22, and Rs 17,881 crore of Rs 41,560 crore in 2022-23. Notably, in 2023-24, the BRS government used Rs 43,918 crore — an impressive 87 per cent of the total Rs 50,528 crore borrowed — for capital expenditure.
Further reinforcing Telangana’s strong fiscal health, the CAG report highlights that actual State Budget realisations stood at nearly 79 per cent of estimated projections in 2023-24. Against the budgeted Rs 2,77,690 crore, actual expenditure reached Rs 2,19,307 crore.
Revenue receipts also showed consistent growth during the period under BRS rule, increasing from Rs 1.02 lakh crore in 2019-20 to Rs 1.69 lakh crore in 2023-24. Telangana’s State Own Tax Revenue (SOTR) surged from Rs 67,597 crore to Rs 1.11 lakh crore, while non-tax revenue soared from Rs 7,360 crore to Rs 23,819 crore. While the State’s share of central taxes rose from Rs 15,988 crore to Rs 23,742 crore, grants-in-aid from the Centre dwindled from Rs 11,598 crore to Rs 9,934 crore.
The CAG report’s findings dismiss the Congress government’s narrative that the BRS regime burdened Telangana with unsustainable debt. Instead, it shows that borrowing was primarily used for capital investments, ensuring long-term economic stability. Additionally, Telangana’s revenue growth indicates strong financial management under BRS, despite challenges posed by reduced Central grants and economic disruptions due to Covid-19.