The Telangana government has unveiled a budget of Rs 3.049 lakh crore for the fiscal year 2025-26, placing a strong emphasis on fulfilling its six key poll promises.
Presented by Deputy Chief Minister Mallu Bhatti Vikramarka in the state Assembly, the budget allocates over Rs 56,000 crore specifically for welfare initiatives and aims to generate Rs 64,000 crore through open market borrowings.
The total expenditure for the state is projected at Rs 3,04,965 crore, with revenue expenditure at Rs 2,26,982 crore and capital expenditure at Rs 36,504 crore. Vikramarka described the budget as a “perfect balance between welfare and development,” highlighting significant allocations such as Rs 24,439 crore for agriculture, Rs 31,605 crore for rural development, and Rs 23,108 crore for education.
Key initiatives include the Mahalakshmi scheme, offering Rs 2,500 monthly, subsidized cooking gas, and free transportation for women. The Rythu Bharosa scheme will provide Rs 15,000 per acre to farmers, while the Gruha Jyothi scheme will supply 200 units of free electricity to households. The Indiramma Indlu scheme will assist the homeless with house sites and Rs 5 lakh, and the Yuva Vikasam scheme will offer students Rs 5 lakh in aid. Additionally, the Cheyutha scheme provides social security pensions of Rs 4,000 monthly.
The budget allocates Rs 40,232 crore for Scheduled Castes welfare and Rs 17,169 crore for Scheduled Tribes welfare. Health and Energy departments will receive Rs 12,393 crore and Rs 21,221 crore, respectively. The government aims to elevate Telangana’s economy, currently at USD 200 billion, to a trillion-dollar economy within the next decade.
Despite ambitious goals, the state faces a rising financial burden, with liabilities projected to exceed Rs 5 lakh crore by the next fiscal year. To mitigate this, the government is engaging with financial institutions to reduce borrowing costs and extend repayment periods.
The budget reiterates that most borrowings will fund capital projects designed to generate income and boost economic growth. Currently, Telangana’s per capita income is Rs 3,79,751, showing a growth rate of 9.6 percent and a GSDP growth of 10.1 percent, reaching Rs 16,12,579 crore in 2024-25.
Additionally, the state government has expressed concerns regarding decreasing central allocations, with its share from the 15th Finance Commission dropping to 2.102 percent from 2.437 percent. The government advocates for a tax distribution model that incentivizes states performing well and significantly contributing to the national economy.
