Hyderabad: Telangana’s pension expenditure jumped nearly 60% and subsidy spending rose over 17% in the first quarter of 2026-27 compared with the corresponding period last year, according to the latest Comptroller and Auditor General (CAG) accounts.The rise comes against the backdrop of Telangana high court’s recent concerns over the growing burden of welfare schemes.Between April and June, Telangana spent ₹7,309.49 crore on pensions, up from ₹4,572.91 crore during the same period in 2025-26. Subsidy expenditure rose to ₹6,956.14 crore from ₹5,932.92 crore.
Justice Nagesh Bheemapaka had recently questioned the growing welfare burden on the state. The judge pointed out that Telangana has around 1.15 crore families, while nearly 1.05 crore were availing welfare benefits. He cautioned that benefits should reach those genuinely in need.The CAG’s June accounts show that Telangana had already spent 49.6% of its annual pension allocation in the first three months of the financial year.The state had provided ₹14,736.56 crore for pensions for 2026-27. Subsidy spending too was front-loaded. The ₹6,956.14 crore spent by June accounted for 38.42% of the annual provision of ₹18,105.16 crore.Overall, revenue expenditure rose to ₹54,815.34 crore during April-June, from ₹47,804.65 crore in the corresponding period last year.Revenue receipts stood at ₹42,525.96 crore. This left Telangana with a revenue deficit of ₹12,289.38 crore by the end of June, against ₹10,582.85 crore during the same period last year.The fiscal deficit stood at ₹21,919.24 crore, compared with ₹20,266.09 crore a year earlier.Capital expenditure, however, also increased. It rose to ₹6,579.44 crore during April-June from ₹4,755.31 crore in the corresponding period last year.The June accounts show a sharp increase in welfare-related expenditure in the first quarter, with nearly half the annual pension allocation utilised by the end of June.
