Telangana’s cash crunch has an audit trail
CAG records show sustained reliance on RBI liquidity support, while the widely circulated 2,000-file backlog remains unverified.
CAG records document the state’s reliance on RBI liquidity support; the reported file backlog remains unverified.
Telangana’s finances are under pressure, and this part is not rumour. CAG-linked Finance Accounts for 2024-25 show the state used Special Drawing Facility for ₹27,730 crore across 363 days, Ways and Means Advances for ₹64,188 crore across 298 days and overdraft for ₹37,457 crore across 123 days. It maintained the mandatory minimum cash balance without financial accommodation on only two days.
The state’s 2026-27 budget material also records a ₹25,750 crore revenue shortfall in the 2025-26 Revised Estimates against the Budget Estimates. The Finance Department, whose stated job includes “real-time management of State finances”, has plenty to manage.
A report has additionally alleged that more than 2,000 Finance Department files are pending and that capital spending may be cut to clear bills. Those figures come from unnamed officials, with no file list, cut-off date, government order or payment data published. The ₹8,000 crore fee-reimbursement figure has been repeated by private-college associations and a political representative, but remains an attributed claim rather than an official audited liability.
The cash stress is documented. The 2,000-file headline is still waiting for its paperwork.