On 19 March 2025, Deputy Chief Minister (Dy CM) and Finance Minister (FM) of Telangana, Mallu Bhatti Vikramarka, presented the state’s budget for the financial year 2025-26 (FY26) with a total outlay of Rs 3,04,965 crore, marking a 5% increase from the previous year’s budget of Rs 2,91,000 crore for FY25.
- This budget focuses on infrastructure, industrial growth, welfare, and urban development, aiming to boost Telangana’s economy and improve public services.
Financial Indicators:
i.A total of Rs 2,26,982 crore has been allocated for revenue expenditure, while Rs 36,504 crore has been set aside for capital expenditure (CapEx).
ii.The Telangana economy continues to grow steadily, recording a 10.1% increase in the state’s Gross State Domestic Product (GSDP) and a 9.6% rise in per capita income compared to the previous financial year. The state’s per capita income is 1.8% higher than the national average.
iii.On the revenue receipts front, the State estimated the revenue to be at Rs.2.29 lakh crore of which the State taxes and duties would contribute Rs.1.45 lakh crore, State’s share in central taxes Rs.29,899 crore, and other non-tax receipts at Rs.4,292 crore including the Grants in Aid and Contributions of Rs.22,782 crore.
iv.Telangana may need to borrow additional funds; however, borrowing capacity is restricted by the state’s Fiscal Responsibility and Budget Management (FRBM) regulations 2005 and central government-imposed borrowing limits.
- It projects a surplus of Rs.2,738 crore and a Fiscal Deficit(FD) of Rs.54,009 crore, mainly on account of borrowings, while the primary deficit is pegged at Rs.34,640 crore.
Key Allocations:
i.Agriculture Sector : A total of Rs 24,439 crore has been allocated to the Agriculture Department for various schemes, including Rythu Bharosa and Indiramma Abhaya Hastham.
ii.Irrigation Sector: The Telangana government has allocated Rs 23,373 crore for irrigation projects in the 2025-26 budget. Additionally, the Outer Ring Road (ORR) Phase II Water Supply Scheme will be implemented with an outlay of Rs 5,942 crore to enhance water distribution across key areas.
iii.Industrial Development: Introduction of the ‘Mega Master Plan 2050’ to decentralize growth, including greenfield industrial clusters in Ranga Reddy and Mahabubnagar districts in Telangana.
iv.Healthcare: Establishment of 95 new free dialysis centres, adding to the existing 102 facilities across the state. A total of Rs 12,393 crore allocated to the health, medical, and family welfare department, marking an 8.06% increase from the previous year’s budget estimate.
v.Education Sector: A total of Rs 23,108 crore has been proposed for the education sector, with a focus on infrastructure development and the construction of Young India Integrated School and Young India Skill University (YISU).
vi.Energy Sector : An allocation of Rs 21,221 crore has been made for the Energy Department. Additionally, the Yadadri Thermal Power Plant in Nalgonda district of Telangana is set to be completed by May 2025.
vii.Future City and Artificial Intelligence (AI) Hub : A Future City spanning 765 square kilometres (sq km) is being developed, with the Future City Development Authority responsible for regulating and overseeing its growth. As part of this initiative, an AI City is planned on 200 acres, aiming to attract AI startups and technology companies.
- Additionally, Google, subsidiary of Alphabet Inc based in the United States of America (USA) will establish an AI-powered accelerated centre within the AI City, further boosting innovation and investment in emerging technologies.
viii.Urban Infrastructure: A total of Rs 17,677 crore has been proposed for the Municipal Administration Department, with a focus on major infrastructure projects. Under the High-Impact City Infrastructure and Traffic Improvement (HICITI) initiative, 31 flyovers and 17 underpasses will be constructed at a cost of Rs 7,032 crore to enhance urban mobility and reduce traffic congestion.
ix.Other Allocations : A total of Rs 900 crore has been allocated for the Youth Services Department, while Rs 31,605 crore has been proposed for the Panchayati Raj and Rural Development Department.
Key Welfare Initiatives:
i.A total of Rs 40,232 crore has been allocated for Scheduled Castes (SCs) Welfare, while Rs 17,169 crore has been earmarked for Scheduled Tribes (STs) Development.
- The Backward Classes (BCs) Welfare Department will receive Rs 11,405 crore, and Rs 3,591 crore has been set aside for Minority Welfare. Additionally, Rs 2,862 crore has been allocated for Women and Child Welfare.
ii.The state government has allocated Rs 56,084 crore for implementing its 6 guarantees. Key allocations include Rs 4,305 crore for the Mahalakshmi scheme, Rs 2,080 crore for Gruha Jyothi, Rs 1,800 crore for Sanna Rice Bonus, Rs 1,143 crore for Rajiv Arogya Sri, Rs 723 crore for the gas cylinder subsidy, and Rs 600 crore for Indiramma Atmiya Bharosa.
ii.Banking, Financial Services, and Insurance (BFSI) Training Programme: Launched to provide job opportunities in the BFSI sector for degree and engineering students. Currently implemented in 38 colleges, targeting 10,000 students across 18 engineering and 20 degree colleges.
Announcement:
i.The Telangana government announced the development of India’s first Net-Zero Future City, setting a new standard in sustainable and smart urbanisation.
- Additionally, it will house specialised zones such as an AI City, Pharma Hub, Sports City, and Clean Energy Innovation Zone, making it a global hub for technology, industry, and sustainable development.
ii.The Telangana government has announced the distribution of two high-quality sarees annually to 64.7 lakh Self-Help Groups (SHGs) members across the state.
About Telangana:
Chief Minister (CM)– Revanth Reddy
Governor– Jishnu Dev Varma
Capital– Hyderabad
National Parks (NP)– Mrugavani NP, Mahavir Harina Vanasthali NP
