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.
The Telangana Budget 2025-26 includes:
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.
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).
Total allocations for SC, ST, and BC welfare amount to nearly ₹69,000 crore, underscoring the government’s commitment to social justice and inclusivity.
A key focus of the budget is the implementation of the Congress-led government’s Six Guarantees, aimed at social welfare and economic empowerment.
Additionally, a ₹11,500 crore subsidy has been allocated to reduce power costs and support farmers and industries.
The Telangana Government expects revenue receipts of ₹2.29 lakh crore, sourced from:
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.
The Energy Department has been allotted ₹21,221 crore, with a significant focus on:
This investment is expected to enhance energy security and improve power supply reliability across Telangana.
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.
| 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) |
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