A report of the Comptroller and Auditor General tabled in the Telangana assembly on Monday painted a picture of strained public finances in the state during 2024-25, marked by under-utilisation of the budget, poor revenue mobilisation, rising debt, and irregularities in tax administration.. CAG report on Telangana’s fiscal performance in FY25 flags debts, budget underutilisation. The report pointed out that while the government managed to keep the fiscal deficit broadly within projected levels through borrowings, the widening revenue deficit and increasing debt burden could remain a matter of concern for the state’s fiscal sustainability.. According to the report, the Telangana government was unable to utilise its budget in line with the targets set for the 2024-25 financial year, spending only ₹2,18,251 crore against the ₹2,74,058 crore projected in the budget under revenue and capital expenditure, which amounted to 80%.. Under the revenue expenditure, the government had estimated spending ₹2,20,945 crore, but actual spending stood at ₹1,77,224 crore, which was also about 80% per cent of the estimate.. In contrast, under capital expenditure, the government had proposed to spend ₹33,487 crore, but ended up overspending by 108%, with a total of ₹36,072 crore spent in the current financial year.. The report also pointed out that the government had projected ₹17,730 crore towards its interest payment obligations in the year. However, the actual burden was much higher, with the state paying ₹27,803 crore.. Similarly, under the salary and allowances bill for government employees, the government had budgeted ₹28,093 crore, but had to spend ₹30,277 crore, leaving little room for development, welfare spending.. The CAG also pointed out sharp shortfall in revenue receipts. The state had expected ₹2,21,242 crore in revenue receipts, but the actual collections stood at ₹1,67,804 crore, 76% of the estimate.. The shortfall was particularly severe in non-tax revenue and grants expected from the Centre. Under non-tax revenue, the government had projected collections of ₹35,208 crore, but realised only ₹23,608 crore, or 67% of the estimate.. Likewise, the state had anticipated receiving ₹21,636 crore in grants from the Central government, but actually received only 37% of that with ₹7,913 crore.. The government had originally projected that revenue receipts would exceed revenue expenditure, resulting in a modest revenue surplus of ₹297 crore. However, the state ended up with a revenue deficit of ₹9,420 crore.. At the same time, the state had estimated a fiscal deficit of ₹49,256 crore. The actual fiscal deficit was found to be ₹48,922 crore, broadly in line with projections. The government bridged this deficit by raising ₹48,922 crore through open market borrowings.. The report said the state raised a total of ₹65,537 crore in open market loans during 2024-25. This figure included ₹ 5,842 crore of unpaid old Ways