KTR raises concern over Telangana’s fiscal decline, calls CAG report a ‘red alert’
KTR warned Telangana faces an economic crisis, citing the CAG report showing a revenue deficit and rising debt under Congress rule. He questioned government spending and demanded answers from Congress leaders
Updated On - 11 August 2025, 10:01 PM
Hyderabad: Raising concern over the decline in the State revenue, BRS working president KT Rama Rao sounded a serious red flag over the latest CAG (Comptroller and Auditor General) report. He said the Congress government was driving Telangana into an economic crisis within just months of assuming power.
Stating that the failed Congress party’s governance had resulted in a failed economy, he said they had promised six guarantees but delivered only a failed economy. While income was on a downward trend, debts were zooming up.

Calling it “plain math, not rocket science,” Rama Rao said the State’s finances were crumbling due to the Congress government’s incompetence. He pointed out that while the budget projected a Rs 2,738 crore surplus, the first quarter closed with a staggering Rs 10,583 crore revenue deficit. The State recorded a fiscal deficit of Rs 20,266.09 crore against the annual projection of Rs 54,009.74 crore.
According to the CAG, non-tax revenues were abysmally low at 3.37 per cent of the target of Rs 2,26,720 crore, while borrowings had already reached Rs 20,266 crore, i.e. 37.5 per cent of the annual limit. The tax revenue stood at just Rs 35,721.81 crore, i.e. 20.38 per cent of the annual target at the end of June this year, against 21 per cent of the annual target in June last year.
“Without a single new road or project being commissioned, without even providing students a decent square meal, this government has spent Rs 20,266 crore. Where is the expenditure going?” Rama Rao asked.
He demanded that Congress leaders, who claimed Telangana’s economy was on autopilot, explain the ongoing phenomenon of free fall.
“Can the financial experts of Congress tell how they plan to bring the State’s economy back on track?” he asked.