Telangana Government Unveils ₹3.04 Lakh Crore Budget for 2025-26: Focus on Welfare and Development

The Telangana Government has presented its most ambitious budget to date, crossing the ₹3 lakh crore mark for the first time since the state’s formation. The budget, which amounts to ₹3.04 lakh crore, reflects the government’s commitment to welfare programs, economic growth, and infrastructure development.

Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the Finance portfolio, presented the budget in the state assembly, emphasizing inclusivity and equitable resource distribution. The financial plan outlines significant allocations for agriculture, education, backward classes, and flagship welfare schemes, all while balancing fiscal challenges.

Budget Breakdown: Revenue and Capital Expenditure

The Telangana Budget 2025-26 includes:

• Revenue Expenditure: ₹2.26 lakh crore
• Capital Expenditure: ₹36,504 crore
• Total Budget Outlay: ₹3.04 lakh crore (5% higher than last year’s ₹2.91 lakh crore)
• Surplus: ₹2,738 crore
• Fiscal Deficit: ₹54,009 crore
• Primary Deficit: ₹34,640 crore

The budget reflects the state’s continued dependence on borrowings, with an estimated ₹70,000 crore in loans, including ₹64,539 crore from open market borrowings.

Major Allocations: Welfare and Development at the Forefront

The government has made massive allocations for various sectors, particularly for welfare programs targeted at backward classes (BCs), scheduled castes (SCs), and scheduled tribes (STs).

Key Sector-Wise Allocations:

• Agriculture: ₹24,439 crore
• Panchayat Raj (Rural Development): ₹31,605 crore
• Education: ₹23,108 crore
• BC Welfare: ₹11,405 crore
• SC Welfare: ₹40,232 crore
• ST Welfare: ₹17,169 crore

Total allocations for SC, ST, and BC welfare amount to nearly ₹69,000 crore, underscoring the government’s commitment to social justice and inclusivity.

Focus on Six Guarantees: ₹56,084 Crore Allocated

A key focus of the budget is the implementation of the Congress-led government’s Six Guarantees, aimed at social welfare and economic empowerment.

• Rythu Bharosa (Farmer Support): ₹18,000 crore
• Cheyutha (Livelihood and Skill Development): ₹14,861 crore
• Indiramma Housing (Affordable Housing): ₹12,571 crore
• Mahalakshmi Scheme (Free Bus Travel for Women): ₹4,305 crore
• Rajiv Yuva Vikasam (Youth Development): ₹6,000 crore
• Scholarships/Stipends for Students: ₹4,452 crore

Additionally, a ₹11,500 crore subsidy has been allocated to reduce power costs and support farmers and industries.

Revenue Receipts and Debt Burden

The Telangana Government expects revenue receipts of ₹2.29 lakh crore, sourced from:

• State Taxes and Duties: ₹1.45 lakh crore
• State’s Share in Central Taxes: ₹29,899 crore
• Grants-in-Aid and Contributions: ₹22,782 crore
• Other Non-Tax Receipts: ₹4,292 crore

However, the state’s debt burden remains a major concern, with ₹19,370 crore earmarked for debt servicing. Interestingly, debt repayment in the current year has already exceeded ₹22,000 crore—much higher than the budgeted ₹17,729 crore.

Energy Sector: Yadadri Thermal Power Plant and Electricity Ambulance Service

The Energy Department has been allotted ₹21,221 crore, with a significant focus on:

• Completing the Yadadri Thermal Power Plant
• Launching an Electricity Ambulance Service to provide faster and more efficient power services

This investment is expected to enhance energy security and improve power supply reliability across Telangana.

Economic Growth: Telangana’s Strong Performance

Gross State Domestic Product (GSDP)

• Telangana’s GSDP at constant prices: ₹16.12 lakh crore
• Growth rate: 10.1% (higher than previous year’s 9.9%)

Per Capita Income

• Telangana: ₹3.79 lakh (growth rate: 9.6%)
• National Average: ₹2.05 lakh (growth rate: 8.8%)
• Telangana’s per capita income is 1.8 times higher than the national average, indicating strong economic progress.

Sector-Wise Contribution to GSDP

• Services Sector: 66.3%
• Agriculture & Allied Sectors: 17.3%
• Industrial Sector: 16.4%

Deputy CM Vikramarka emphasized that the government’s policies are designed to reflect the aspirations of the people, ensuring empowerment for farmers, entrepreneurs, students, women, and marginalized communities.

Telangana Budget 2025-26: Summary Table

Category	Details
Why in News?	Telangana presented its highest-ever budget of ₹3.04 lakh crore for 2025-26.
Total Budget Outlay	₹3.04 lakh crore (5% increase from ₹2.91 lakh crore last year)
Revenue Expenditure	₹2.26 lakh crore
Capital Expenditure	₹36,504 crore
Fiscal Deficit	₹54,009 crore
Primary Deficit	₹34,640 crore
Major Allocations	– Agriculture: ₹24,439 crore – Panchayat Raj: ₹31,605 crore – Education: ₹23,108 crore – BC Welfare: ₹11,405 crore – SC Welfare: ₹40,232 crore – ST Welfare: ₹17,169 crore
Six Guarantees	₹56,084 crore (includes Rythu Bharosa, Cheyutha, Indiramma Housing, Mahalakshmi Scheme)
Debt Servicing	₹19,370 crore
GSDP (2025-26)	₹16.12 lakh crore (growth rate: 10.1%)
Per Capita Income	₹3.79 lakh (1.8x higher than the national average)
Energy Sector Focus	₹21,221 crore (Completion of Yadadri Thermal Power Plant, launch of Electricity Ambulance Service)