The Telangana government has unveiled its largest-ever budget, exceeding ₹3 lakh crore for the first time since the state’s formation. The total budget for the financial year 2025-26 stands at ₹3.04 lakh crore, with a strong focus on welfare schemes, infrastructure, and energy development. However, the budget also highlights the state’s continued reliance on borrowings.
Welfare and Social Development Prioritised
A significant portion of the budget has been allocated for welfare programmes. The government has set aside ₹11,405 crore for backward classes, ₹40,232 crore for scheduled castes, and ₹17,169 crore for scheduled tribes, bringing the total welfare spending to nearly ₹69,000 crore.
The Congress-led government has also provided substantial funding for its flagship schemes:
– 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
Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, while presenting the budget in the Assembly, reiterated the government’s commitment to social equity and inclusive development.
Major Boost for Agriculture, Education, and Energy
Apart from welfare, key sectors have received substantial funding:
– Agriculture – ₹24,439 crore
– Panchayat Raj – ₹31,605 crore
– Education – ₹23,108 crore
– Energy – ₹21,221 crore
The energy sector’s budget focuses on completing the Yadadri Thermal Power Plant and launching an electricity ambulance service to quickly address power-related issues.
Balancing Growth with Debt
Despite projecting a revenue surplus of ₹2,738 crore, the budget also accounts for a fiscal deficit of ₹54,009 crore, largely funded through borrowings estimated at nearly ₹70,000 crore. The government expects revenue receipts of ₹2.29 lakh crore, with ₹1.45 lakh crore coming from state taxes and ₹29,899 crore from central taxes.
However, debt repayment is becoming a concern. The government has allocated ₹19,370 crore for loan repayments, a figure that has already surpassed initial estimates for the current fiscal year.
Economic Growth and Per Capita Income
Telangana’s economy continues to grow steadily, with its Gross State Domestic Product (GSDP) expected to reach ₹16.12 lakh crore, marking a 10.1% growth rate. The state’s per capita income has risen to ₹3.79 lakh, which is nearly 1.8 times the national average of ₹2.05 lakh.
The services sector is the largest contributor to the economy at 66.3%, followed by agriculture (17.3%) and industry (16.4%).
Vision for an Inclusive Telangana
Presenting the budget, Mr. Vikramarka stressed that the government’s policies aim to empower farmers, entrepreneurs, students, and women while ensuring economic stability. “It is our shared responsibility to work together and ensure equitable growth for all sections of society,” he stated.
Balancing social welfare with infrastructure growth, the budget sets an ambitious path for Telangana’s future. However, managing rising debt and ensuring long-term financial stability remain key challenges for the state.
