TG spending more on salaries, grants: CAG

A significant chunk of Telangana’s expenditure in the financial year has gone for salaries, wages and grants, leaving behind only a sliver for scholarships, subsidies and pensions.
The CAG report for 2023-24 says that nearly one-third of the expenditure was for capital spending and grants-in-aid.
Salaries alone accounted for Rs 50,565 crore, forming the single largest head with 22.71 percent of the total actual expenditure. Capital expenditure (including salaries) stood at Rs 43,932 crore or 19.95 percent.
Close behind was the ‘Other Grants-in-aid’ category, which took Rs 27,981 crore or 12.07 percent. Together, these three heads made up more than half of the total spending.
In comparison, pension payments and interest payments stood at Rs 24,347 crore (10.50 percent) and Rs 16,842 crore (7.26 percent), respectively, suggesting that the state is devoting a significant portion of its budget to committed liabilities.
Repayment of debt, a critical fiscal responsibility, stood at Rs 13,590 crore or 5.94 percent, while grants-in-aid to local bodies followed closely at Rs 12,519 crore (5.47 percent). ‘Others’ consumed Rs 11,723 crore or 5.09 percent.
Meanwhile, subsidies were allotted Rs 9,411 crore (4.06 percent), and loans given were a mere Rs 6,861 crore (2.96 percent). At the very bottom of the expenditure chart were scholarships and stipends – allocated just Rs 1,416 crore, which was a meagre 0.61 percent of the actual expenditure.
The finance department’s note clarified that the capital expenditure figure includes Rs 6,241 crore earmarked for salaries and wages during 2023-24, which may have further inflated the capital spending head.