RBI raises Telangana WMA limit 13.5 pc to Rs 2,733 crore using BRS-era revenue figures
The RBI has raised Telangana’s Ways and Means Advances limit by 13.5 per cent to Rs 2,733 crore, based on average revenue receipts of Rs 1,65,662 crore over three years. The increase provides the State with Rs 326 crore additional short-term borrowing headroom.
Hyderabad: The Congress government is continuing to benefit from the revenue performance recorded during the previous BRS regime, with the latest Reserve Bank of India (RBI) assessment providing a fresh indication of it. The RBI has revised Telangana’s Ways and Means Advances (WMA) limit by 13.5 per cent, from Rs 2,407 crore to Rs 2,733 crore.
The additional Rs 326 crore in short-term borrowing headroom is based on the State’s average revenue receipts during 2022-23 to 2024-25, a period spanning two BRS years and the first year of the Congress government. WMA is intended to bridge temporary mismatches between government receipts and expenditure.
Telangana’s revenue receipts stood at Rs 1,59,350 crore in 2022-23 and rose to Rs 1,69,293 crore in 2023-24, when the BRS was in power for most of the year. Instead of continued rise, they fell marginally to Rs 1,67,804 crore in 2024-25, the first full financial year under the Congress rule. The three-year average of Rs 1,65,662 crore has consequently provided the base for the enhanced WMA limit.
The RBI report indicated how sustained revenue growth during the BRS years has now translated into higher short-term cash-management headroom for the Congress government. The immediate Rs 326-crore increase is thus a benefit derived from the stronger revenue base of the preceding period.
However, the trend in revenue receipts after the change of government, is less favourable. The Congress government estimated revenue receipts of Rs 2.21 lakh crore for 2024-25, subsequently revising the estimate to Rs 2.02 lakh crore. Actual receipts were only Rs 1.67 lakh crore.
For 2025-26, the government initially projected Rs 2.29 lakh crore and later revised it to Rs 2.03 lakh crore. Official figures put the actual receipts at Rs 1.81 lakh crore, with the audited figure expected to be reflected in the 2027-28 Budget.
This widening gap between budget projections and actual receipts could become significant for the State’s fiscal capacity. The WMA limit is linked to the average revenue receipts of the preceding three years. A sustained slowdown in revenue growth would therefore pull down the base used for future WMA revisions.
Experts fear that if the current trend of lower-than-budgeted receipts continues, the benefit could weaken in subsequent WMA cycles.
The implications extend beyond short-term cash management. A weaker revenue base can constrain the State’s fiscal space and borrowing capacity. It can also affect fiscal parameters relevant to Centre-State financial transfers and other allocations.
RBI Report On Ways & Means Advances Enhancement:
- State: Actual Revenue Receipts (in Crore Rupees)
- Telangana: 1,59,350 (2022-23); 1,69,293 (2023-24); 1,67,804 (2024-25)
- Average base for WMA revision: Rs 1,65,662 crore
- Existing WMA limit: Rs 2,407 crore
- Revised WMA limit: Rs 2,733 crore
- Increase rate: 13.5 per cent
