The Telangana Government, India, has unveiled its ₹3.04 lakh crore budget for the fiscal year 2025-26, marking a 5% increase from the previous year. The budget focuses on welfare, agriculture, and infrastructure while highlighting the state’s growing reliance on borrowings.
The Telangana Government has unveiled a ₹3.04 lakh crore budget for the fiscal year 2025-26. This marks the first time the state’s budget has crossed the ₹3 lakh crore threshold since Telangana’s formation. The financial plan, presented by Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, prioritizes welfare, agriculture, and infrastructure while relying heavily on borrowings.
The budget includes a revenue expenditure of ₹2.26 lakh crore and a capital expenditure of ₹36,504 crore, reflecting a 5% rise from the previous year’s ₹2.91 lakh crore allocation. Despite the increase, this growth rate is moderate compared to past budgets.
Reliance on Borrowings and Fiscal Outlook
Telangana’s budget highlights its dependence on borrowings, estimated at ₹70,000 crore, including ₹64,539 crore from open market sources. The fiscal deficit stands at ₹54,009 crore, with a primary deficit of ₹34,640 crore. Despite this, the budget projects a surplus of ₹2,738 crore.
The government has also allocated ₹21,221 crore to the Energy Department, focusing on completing the Yadadri Thermal Power Plant and introducing an electricity ambulance service for improved power distribution.
Key Allocations: Welfare and Development Priorities
A significant portion of the budget is directed toward welfare initiatives, including:
- Backward Classes Welfare: ₹11,405 crore
- Scheduled Castes Welfare: ₹40,232 crore
- Scheduled Tribes Welfare: ₹17,169 crore
- Total Welfare Allocations: ₹69,000 crore
Other major allocations include:
- Agriculture: ₹24,439 crore
- Panchayat Raj: ₹31,605 crore
- Education: ₹23,108 crore
The budget also prioritizes the Congress party’s six guarantees, with ₹56,084 crore earmarked for their implementation. These include Rythu Bharosa (₹18,000 crore), Cheyutha (₹14,861 crore), and Indiramma housing (₹12,571 crore). The Mahalakshmi scheme, which provides free bus travel for women, has been allocated ₹4,305 crore.
Economic Growth and Per Capita Income
Telangana’s Gross State Domestic Product (GSDP) at constant prices is estimated at ₹16.12 lakh crore, with a growth rate of 10.1%. The state’s per capita income has reached ₹3.79 lakh, 1.8 times higher than the national average of ₹2.05 lakh.
Government’s Vision for Inclusive Development
Deputy Chief Minister Mallu Bhatti Vikramarka emphasized that the budget reflects the government’s commitment to social equality and economic progress. “This budget is designed to distribute resources fairly and build a system free from inequalities,” he stated. The state government aims to support farmers, entrepreneurs, students, and women through well-structured policies that align with Telangana’s economic aspirations.
With increased expenditure on welfare, infrastructure, and power, the budget reflects the government’s vision to drive inclusive growth while managing fiscal challenges.
