The Telangana Government has spent a meagre ₹2,550 crore on improving the educational infrastructure in the State for almost a decade since its formation.

This is just a fraction of the ₹2.55 lakh crore capital expenditure (Capex) made since the State formation in 2014 (till the end of financial year 2022-23).

The figures are given in the State Finances 2022-23, a detailed analysis of the financial conduct of the States between 2014-23, released by the Comptroller and Auditor General of India (CAG). The publication, a first of its kind, explained the priorities of different state governments over the 10-year period with statistical details.

A study of the status of Telangana revealed that the State had spent ₹6,496 crore on health, another key human development indicator, during the period when the Bharat Rashtra Samithi was in power in the State.

Telangana has incurred ₹9.12 lakh crore revenue expenditure relating to charges on maintenance, repair, upkeep and working expenses required to maintain the assets as also all other expenses incurred for the day to day running of the government like establishment and administrative expenses.

The Capex, involving acquisition of tangible assets of permanent nature and enhancing utility of existing assets was however ₹2.55 lakh crore, going by the statistics. Telangana has no doubt performed well in the State’s Own Tax Revenue and Non-Tax Revenue over a period of time, but the State had suffered financially during the same period.

A major chunk of the ₹2.55 lakh crore Capex was made under the Irrigation and Flood Control, which accounted for ₹1.03 lakh crore with much-hyped Kaleshwaram project underway. The fate of the project however, has been in jeopardy ever since piers of the Medigadda barrage sunk and cfracks reportedly developed on the other barrages like Annaram and Sundilla. In the process, the previous government neglected major projects like Palamuru-Rangareddy and Sitarama lift irrigation schemes which are of crucial importance to the State.

Another major area of spending was water and sanitation, primarily on Mission Bhagiratha drinking water supply to all households, which accounted for ₹38,639 crore. Spending on the two indicators, according to official sources, was indicative of a State of financial mismanagement where discipline was virtually not existent and budgets were entirely consumed by salaries, wasteful expenditure, debt service payments and interest payments.

Housing is another important area where the government had spent just ₹13,000 crore in nine years, notwithstanding the huge publicity given to the construction of two bedroom housing scheme. Spending on the scheme has been minimal going by the numbers reflected in the CAG’s report.

The report indicates that 85% of the State’s spending was on revenue expenditure towards payment of salaries, subsidies and welfare rather than creating new assets. The government had in the process relied heavily on own tax revenue, mines and sale of land in important areas.