Telangana recorded a revenue deficit of ₹15,096 crore in the first six months of 2026-27, according to the September state accounts. The budget had projected a revenue surplus of ₹6,858 crore for the full year.

Borrowing

The state's borrowing limit has been raised from the budgeted ₹58,458 crore to ₹61,457 crore. Official sources said the Centre agreed after the state accepted certain structural reforms, which were not specified. Net borrowings and other liabilities reached ₹44,612 crore by September, or 72.59% of the annual estimate.

Income and spending

  • Revenue receipts: ₹92,013 crore, 38.14% of the ₹2.41 lakh crore estimate.
  • Tax revenue reached 45.52% of target, non-tax revenue 16.1% and grants-in-aid 15.34%.
  • Total spending: ₹1.35 lakh crore, 47.88% of the budget.
  • Interest: ₹16,565 crore (77.76% of the allocation). Pensions: ₹14,235 crore (96.6%). Subsidies: ₹10,298 crore (56.88%).
  • Capital spending: ₹27,743 crore, 58.69% of the estimate, down from 60.84% in the same period last year.

Only the borrowing limit has been revised. All other figures stay as in the budget.