Govt rebuts borrowing report, but questions persist over CAG figures

The Telangana government has disputed a news report claiming the state borrowed double its income in April 2026. While the government insists borrowings were within FRBM limits and revenue receipts were higher than reported, discrepancies with CAG’s official fiscal data have raised further questions.

Hyderabad: The Telangana government issued a rejoinder to a news report titled “Debt surges as Telangana spends double its income in 1st month”, disputing the borrowing and revenue figures published for April 2026. However, the rejoinder raised more questions than clarifications.

In the rejoinder, the Principal Secretary for the Finance Department maintained that the report incorrectly stated that the State raised debt of Rs 11,414 crore in April. According to the government, only Rs 6,900 crore was raised through Open Market Borrowings (OMBs) via the Reserve Bank of India. The government also pointed out that it repaid Rs 7,949 crore towards principal and interest during the month, resulting in a negative net borrowing position.

---

The government asserted that all borrowings were being raised strictly within the limits prescribed under the Fiscal Responsibility and Budget Management (FRBM) framework and with the approval of the Government of India.

It also disputed the revenue receipts of Rs 10,974 crore cited in the report, asserting that actual revenue receipts stood at Rs 13,098 crore.

However, the clarification has triggered fresh scrutiny as the original report was based on the monthly fiscal indicators released by the Comptroller and Auditor General (CAG) officially. This newspaper did not allege any breach of FRBM limits but only highlighted that total borrowings and liabilities exceeded revenue receipts during April.

Further, the government’s rejoinder focused only on OMBs, whereas the CAG statement records “Borrowings and Other Liabilities (Net)” at Rs 11,413.93 crore. The news report relied on this broader fiscal indicator rather than only market borrowings.

Similarly, while the government claimed revenue receipts of Rs 13,098 crore, it did not provide a detailed breakup of the additional Rs 2,124 crore over and above the Rs 10,974 crore reflected in the CAG’s revenue receipts data, which already includes GST, sales tax, excise, stamps and registration, central tax devolution, grants and non-tax revenue.

Whether the government’s figures represent a different accounting treatment or whether they contradict the fiscal data placed in the public domain through the CAG’s monthly accounts, remains unclear.