Despite Record Revenue Growth Rate, Telangana Finances Alarming

Telangana government speaks about registering second highest revenue growth rate of 16 percent in the last year (February 2016 to February 2017) but the government is successfully mute about a sharp increase in the fiscal deficit growth.

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The fiscal deficit growth is at 32 Percent which is nearly double the revenue growth rate. The increase in fiscal deficit despite the commendable revenue growth rate in the state was primarily because of poor financial management.

The government had borrowed about Rs 10,000 crore out-of-Budget in the same period for the implementation of Mission Bhagiratha and Mission Kakatiya, amongst other projects. While the state leads in the revenue growth percentage in the country, Gujarat and Maharashtra has earned more revenue in the same period.