KTR: Congress govt ended first quarter with Rs 10,583 crore revenue deficit instead of promised surplus

Hyderabad: Bharat Rashtra Samithi (BRS) working president KT Rama Rao (KTR) launched a scathing attack on the Congress government in Telangana, accusing Chief Minister A Revanth Reddy of driving the State into a debt trap through reckless borrowing and poor financial management.

CAG flags sharp fiscal deterioration

Referring to the latest report by the Comptroller and Auditor General (CAG) of India, KTR said that in just four months of the 2025–26 financial year, the government had already crossed 50 per cent of its borrowing limit set by the Union Finance Ministry.

“This is a serious red flag. The latest CAG report screams alarm bells,” he warned.

‘From surplus promise to deep deficit’

The BRS leader said the Congress had projected a Rs 2,738 crore surplus budget but ended the first quarter with a Rs 10,583 crore revenue deficit.

“Non-tax revenues have achieved only 3.37 per cent of the budgeted Rs 2,26,720 crore. The fiscal deficit is widening due to poor revenue collection and excessive market loans,” he alleged.

‘Rs 20,266 crore borrowed without development’

KTR claimed that the government had already borrowed Rs 20,266 crore, 37.5 per cent of its annual borrowing target, without initiating new infrastructure projects, building roads or providing improved student welfare. “Where is this money going?” he asked.

‘Political vendetta over governance’

The former minister accused CM Revanth of prioritising political vendetta and publicity stunts over economic growth.

“Instead of building wealth, attracting investments and boosting the economy, this government is obsessed with PR drama. Telangana is paying the price for Congress's incompetence, empty promises, and financial mismanagement,” he said.

Challenge to ‘Congress economists’

KTR demanded that Congress leaders and financial experts explain their plan to stabilise Telangana’s economy.

“Income is on a downward trend and debts are zooming up. This isn’t rocket science, it’s plain math. Telangana’s economy is crumbling under their watch,” he said.