Telangana Unveils Rs. 3.04 Lakh Crore Budget with Focus on Welfare and Infrastructure

Hyderabad: The Telangana government has presented its largest-ever budget, crossing the ₹3 lakh crore mark for the first time since the state’s formation. With a total outlay of ₹3.04 lakh crore for the financial year 2025-26, the budget emphasises welfare schemes, infrastructure, and energy development, while reflecting a continued reliance on borrowings.

Welfare and Social Development Take Centre Stage

A substantial portion of the budget is directed toward welfare programmes, with allocations for backward classes (₹11,405 crore), scheduled castes (₹40,232 crore), and scheduled tribes (₹17,169 crore) totalling nearly ₹69,000 crore. The Congress government’s flagship schemes have also received significant funding:

• Rythu Bharosa: ₹18,000 crore for farmer support
• Cheyutha: ₹14,861 crore for social security
• Indiramma Housing: ₹12,571 crore for affordable homes
• Mahalakshmi Scheme: ₹4,305 crore for free bus travel for women
• Rajiv Yuva Vikasam: ₹6,000 crore for youth development
• Scholarships and Stipends: ₹4,452 crore to support students
• Power Subsidy: ₹11,500 crore to aid electricity consumers

These allocations reaffirm the government’s commitment to social equity and inclusive development, as highlighted by Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka while presenting the budget in the Assembly.

Agriculture, Education, and Energy Get Major Boost

Beyond welfare, key sectors have seen robust funding:

• Agriculture: ₹24,439 crore
• Panchayat Raj: ₹31,605 crore
• Education: ₹23,108 crore
• Energy: ₹21,221 crore

The energy sector’s allocation prioritises the completion of the Yadadri Thermal Power Plant and the launch of an innovative electricity ambulance service for faster response to power-related issues.

Revenue and Borrowings: Balancing Growth with Debt

While the budget projects a revenue surplus of ₹2,738 crore, it also accounts for a fiscal deficit of ₹54,009 crore, largely driven by borrowings estimated at nearly ₹70,000 crore. The state anticipates revenue receipts of ₹2.29 lakh crore, with state taxes contributing ₹1.45 lakh crore and a share of ₹29,899 crore from central taxes.

However, debt servicing remains a growing concern, with the government set to allocate ₹19,370 crore for repayments, a figure that has already exceeded initial estimates for the current fiscal year.

Economic Growth and Per Capita Income

Telangana’s economy continues to show strong growth, with the Gross State Domestic Product (GSDP) estimated at ₹16.12 lakh crore, reflecting a 10.1% growth rate. The state’s per capita income has risen to ₹3.79 lakh, nearly 1.8 times the national average of ₹2.05 lakh. The services sector remains the dominant contributor to the economy at 66.3%, followed by agriculture (17.3%) and industry (16.4%).

Vision for an Equitable Telangana

Presenting the budget, Mr. Vikramarka emphasised that the government’s policies aim to empower farmers, entrepreneurs, students, and women while fostering economic stability. “It is our shared responsibility to work together and ensure equitable growth for all sections of society,” he said.

With a balance of social welfare and infrastructure development, the budget sets an ambitious roadmap for Telangana’s growth while also highlighting the challenges of managing rising debt and long-term financial sustainability.