The State government continues its dependence on market borrowings as the revenue receipts are not keeping pace with expectations.

The government has raised ₹33,729 crore market borrowings in the first four months of the current financial year till the end of July. With eight more months to go for the fiscal to end, the State reached 57.7% of the ₹58,458 crore limit fixed by the Union Finance Ministry for borrowings and other liabilities. The overall revenue receipts at July end were ₹59,642 crore, not even 25% of the ₹2.41 lakh crore of the budget estimates.

Revenue from core sectors like Goods and Services Tax, Stamps & Registration and State Excise duties remained stable in the first four months. GST revenue was at ₹19,103 crore against ₹61,564 crore (31%), Stamps & Registration ₹6,144.95 crore against ₹19,540 crore (31.45%) and State Excise duties was ₹6,965 crore against ₹27,668 crore (25.18%). Revenue from the Stamps & Registration is likely to be a cause of concern over the next couple of months given the uncertainty looming large over land transactions due to adverse impact of Section 22A of the Registration Act that has become a deterrent for prospective buyers and sellers.

The government’s expectations on non tax revenue and grants-in-aid and contributions are apparently belied as non tax revenue was ₹4,274 crore, just 11.96% of the projected ₹35,730 crore and that in the form of grants-in-aid was ₹2,363 crore, 9.78% of the ₹24,166 crore of budget estimates, according to the provisional figures submitted to the Comptroller and Auditor General of India.

On the expenditure front, however, the State continued to bear the burden of interest payment which reached ₹10,532 crore against ₹21,304 crore of the budget estimates. Salaries and pensions continue to be major contributors to the government’s spending at ₹17,874 crore (budget estimates ₹48,358 crore) and ₹10,492 crore (budget estimates ₹14,736 crore). The government’s revenue deficit at the end of July was ₹19,266 crore against surplus of ₹6,857 crore projected in the budget estimates while the fiscal deficit was ₹33,729 crore. Primary deficit too crossed the 60% mark reaching ₹23,197 crore against ₹37,154 crore estimated in the budget.

Published - August 19, 2026 06:56 pm IST