Overview The Telangana State government is actively managing its debt burden while striving to meet its revenue targets. According to recent data, the state's revenue receipts have reached ₹1.24 lakh crore , which is 54.38% of the ₹2.24 lakh crore projected in the budget estimates for the financial year. A significant portion of these receipts comes from borrowings and other liabilities, highlighting the state's reliance on debt financing. Key Revenue Developments Revenue Receipts and Borrowings More than half of the revenue receipts, specifically ₹65,930 crore , are attributed to borrowings and other liabilities. This indicates a substantial dependence on debt to meet the state's financial obligations. With only three months remaining in the fiscal year, achieving the projected revenue receipts remains a significant challenge. Tax and Non-Tax Revenue Tax revenue at the end of the third quarter was ₹1.13 lakh crore , representing 65.02% of the ₹1.75 lakh crore budget estimate. Non-tax revenue, however, remained sluggish at ₹7,120 crore , only 22.52% of the ₹31,618 crore projected. Grants and Contributions Revenue through grants in aid and contributions was notably low, reaching ₹3,805 crore , a mere 16.7% of the ₹22,782 crore projected for the fiscal year. This shortfall impacts the state's ability to fund various developmental projects. GST and Stamps & Registration Revenue from Goods and Services Tax (GST) at the end of nine months was ₹39,004 crore against the budget estimates of ₹59,704 crore , marking 65.33% achievement. Revenue through Stamps and Registration was ₹11,304 crore , 59.22% of the projected ₹19,807 crore . Sales Tax and State Excise Duties Sales Tax collections at the end of the third quarter stood at ₹25,126 crore , 67.07% of ₹37,463 crore . State Excise duties fetched ₹17,507 crore , 63.38% of the budget estimates of ₹27,623 crore . Despite expectations of a significant rise following a hike in retail sales outlet license fees, State Excise duties remained relatively lower. State's Share of Union Taxes Receipts in the form of the State’s share of union taxes were impressive at ₹14,982 crore , 70.69% of the ₹21,195 crore projected for the year. Revenue through other taxes and duties remained stable at ₹6,059 crore at the end of the third quarter. Expenditure Analysis Interest Payments Interest payments continued to be a major expenditure component at ₹21,454 crore , 110.77% of the ₹19,369 crore budget estimate. This indicates that the State has been paying an average of ₹2,383 crore per month on interest. The State is likely to incur around ₹25,000 crore on interest payments by the end of the fiscal year. Pension Payments Expenditure on pension payments was on the higher side at ₹15,126 crore , 107.76% of the ₹13,109 crore budget estimate, with three months still remaining in the fiscal year. Salaries and Wages Expenditure on salaries/wages at the end of the third quarter was ₹35,746 crore , 80.37% of the ₹44,478 crore budget estimate, according to provisional figures submitted to the Comptroller and Auditor General of India. Deficit Indicators The State reported a revenue deficit of ₹9,601 crore against the surplus of ₹2,738 crore projected in the budget estimates at the end of the third quarter. The fiscal deficit was ₹65,930 crore , while the primary deficit stood at ₹44,476 crore , 128.39% of the ₹34,640 crore budget estimate. UPSC Relevance This analysis of Telangana's fiscal performance is highly relevant for the UPSC Civil Services Exam, particularly for GS Paper 3 (Economy) . Understanding the components of state revenue and expenditure, as well as deficit indicators, is crucial for analyzing the economic health of states and their ability to implement developmental programs. The data on tax revenue, non-tax revenue, GST collections, and interest payments provides valuable insights into the state's fiscal management.