Telangana Pension Spending Jumps 60 Percent in First Quarter to Rs 7,309 Crore

HYDERABAD — Telangana’s pension expenditure surged by nearly 60 percent during the first quarter of the 2026-27 financial year compared to the corresponding period last year, according to the latest accounts released by the Comptroller and Auditor General (CAG).

Between April and June, the state government spent ₹7,309.49 crore on pensions, marking a steep rise from the ₹4,572.91 crore recorded during the first quarter of 2025-26. The latest figure indicates that the state has already exhausted 49.6 percent of its total annual pension budget of ₹14,736.56 crore within the first three months of the fiscal year.

Subsidy spending also witnessed an upward trend during the same period. Expenditure on subsidies increased by more than 17 percent, rising to ₹6,956.14 crore from ₹5,932.92 crore in the previous year. This expenditure accounts for 38.42 percent of the state’s total annual subsidy provision of ₹18,105.16 crore, pointing to heavily front-loaded spending in the first quarter.

The findings from the CAG accounts come amid recent observations by the Telangana High Court regarding the financial sustainability of the state's welfare commitments.

Justice Nagesh Bheemapaka recently raised concerns over the escalating welfare burden on state finances. During proceedings, the judge noted that while Telangana has approximately 1.15 crore families, nearly 1.05 crore families are currently availing welfare benefits. Emphasising fiscal prudence, the court cautioned that such assistance must be carefully targeted to reach those who are genuinely in need.