In the last budget of Telangana state, ahead of the elections, the finance department has allegedly advised the government not to announce any populist schemes as the budget estimates went wrong for ongoing fiscal year.
Telangana has been claiming to be a revenue surplus state, but reality appears otherwise. The budget of year 2017-18 estimated a surplus of 4751.31crore. However, ten months into the budget, the estimates have overturned and the youngest state has now revenue deficit 3643.66 crore. There has been minus 79% deviation in the budget
The deficit is the difference between the receipts and expenditure. According to a report in New Indian express, With the State turning from revenue surplus to revenue deficit, the fiscal deficit of the State too is expected to increase beyond the stipulated norms of Fiscal Responsibility and Budget Management (FRBM) Act.
Given this background we need to wait and see how the next budget may project the revenue surplus or deficit