Telangana pension spend jumps 60% in first quarter, CAG data shows

Telangana's pension expenditure rose nearly 60% to Rs 7,309.49 crore in the first quarter of 2026-27, up from Rs 4,572.91 crore in the same period last year, according to the latest CAG accounts. Subsidy spending also increased, reaching Rs 6,956.14 crore from Rs 5,932.92 crore. The state had already used 49.6% of its annual pension allocation by June. The Telangana high court recently raised concerns about the growing welfare burden, with Justice Nagesh Bheemapaka noting that nearly 1.05 crore of the state's 1.15 crore families receive benefits.

Separately, an SBI Research report ranked Telangana seventh among 20 major states in capital expenditure utilisation during the first quarter of FY27. The state spent 13.9% of its annual capex allocation, above the 20-state average of 10.5%. Kerala led with 36.9% utilisation, followed by Madhya Pradesh and Andhra Pradesh. Meanwhile, a parliamentary committee has pointed to the growing role of private healthcare in Telangana as a factor behind high treatment costs. An average hospitalisation in the state costs about Rs 55,000, among the highest in the country.

The CAG accounts also showed Telangana's revenue deficit widened to Rs 12,289.38 crore by June, from Rs 10,582.85 crore a year earlier. The fiscal deficit stood at Rs 21,919.24 crore. Capital expenditure rose to Rs 6,579.44 crore during April-June, up from Rs 4,755.31 crore in the corresponding period last year.