Rise in April borrowings puts T under fiscal stress

HYDERABAD: Telangana's revenue and expenditure for the first month of the new fiscal (2023-24) appears to be not too bright if borrowings are any indication.

According to the most recent Comptroller and Auditor General (CAG) figures, borrowings account for Rs 5,029 crore of the total Rs 15,085 crore received in April. In the last fiscal (2022-23), state had borrowed only Rs 276 crore in April. Salaries and wages too have increased significantly this April compared to last year for the same month.
The CAG figures also show that the state tax revenue in April is Rs 9,698 crore, which is about 2% less than in April 2022. The percentage difference is calculated by comparing the actual budget estimates for the fiscal year in each parameter to how much was achieved in a given month.
Salary and wage hikes led to more expenditure
Official sources said initial months are an indication of what the state is going to achieve when compared to budget estimates.
But in an election year, more income will be needed to implement schemes, officials said. Stamps and registration income was ₹990 crore, 3% less than what was realised in April last year. Similarly, excise duty receipts were ₹960 crore, which is about 2% less when compared to the same parameter in the previous year's corresponding month.
Despite pegging expected non-tax income for this fiscal at ₹22,808 crore, April recorded only ₹357, falling short when compared to the same time last year. Salaries and wages have increased massively leading to more expenditure. The state government paid 6,291 crore under this component in April, up from 3,271 crore in April 2022. In April, the state government also spent 1,483 crore towards interest payments on borrowings.