The Telangana Government has presented a massive ₹3.04 lakh crore budget for the financial year 2025-26.
Telangana Budget 2025 LIVE updates
The budget, crossing the ₹3 lakh crore mark for the first time since the formation of Telangana State, encompasses revenue expenditure of ₹2.26 lakh crore and capital expenditure of ₹36,504 crore. The total outlay is 5% higher than the current year’s ₹2.91 lakh crore, a moderate rise as compared to budgets introduced in the assembly in the past.
The budget however reflects the State’s continued dependence on borrowings estimated at close to ₹70,000 crore including open market borrowings of ₹64,539 crore during the next fiscal.
The welfare-oriented budget presented in the Assembly by Deputy Chief Minister Mallu Bhatti Vikramarka who holds Finance portfolio projects a surplus of ₹2,738 crore and a fiscal deficit of ₹54,009 crore, mainly on account of borrowings, while the primary deficit is pegged at ₹34,640 crore.
BC, SC, ST welfare get lionshare of allocations
Major allocations have been made to agriculture (₹24,439 crore), panchayat raj (₹31,605 crore) and education (₹23,108 crore). The backward classes, scheduled castes and scheduled tribes welfare, however, garnered the lion’s share of allocations with BC welfare accounting to ₹11,405 crore, SC welfare (₹40,232 crore) and ST welfare (₹17,169 crore) taking the total allocations to close to ₹69,000 crore.
Another priority area in allocations was the six guarantees of the Congress, which were given ₹56,084 crore. Rythu Bharosa was given ₹18,000 crore and Cheyutha ₹14,861 crore while Indiramma houses received ₹12,571 crore. The Mahalakshmi scheme providing free bus travel to women received ₹4,305 crore.
True to its assurance, allocation of ₹6,000 crore was made for Rajiv Yuva Vikasam, and another ₹4,452 crore was given for scholarships/stipends while ₹11,500 crore had been earmarked for power subsidy. On the revenue receipts front, the State estimated the revenue to be at ₹2.29 lakh crore of which the State taxes and duties would contribute ₹1.45 lakh crore, State’s share in central taxes ₹29,899 crore, and other non-tax receipts at ₹4,292 crore including the Grants in Aid and Contributions of ₹22,782 crore.
The State is expected to incur development expenditure of ₹1.79 lakh crore and debt servicing of ₹19,370 crore. Interestingly, the debt servicing component during the current year has far exceeded the budget estimates crossing ₹22,000 crore in January itself against the ₹17,729 crore projected in the budget estimates of the current year.
Yadadri Thermal Power Plant
The Energy department received ₹21,221 crore with the focus on completing Yadadri Thermal Power Plant and a new scheme electricity ambulance service to provide faster and more efficient power services to the people was on the anvil during the next fiscal.
Mr. Bhatti Vikramarka said the budget has been designed to distribute resources equally to all sections of society and envisage the establishment of a system free from inequalities. According to the figures presented in the budget, the State’s gross state domestic product at constant prices was estimated at ₹16.12 lakh crore, with a 10.1% growth rate. This is against ₹3.31 crore GDP, which registered a growth rate of 9.9%.
Telangana’s per capita income at ₹3.79 lakh, 1.8 times higher than national average
The per capita income at current prices reached ₹3.79 lakh with a growth rate of 9.6%. This is compared with a national per capita of ₹2.05 lakh with 8.8% growth. “Telangana’s per capita income is higher by 1.8 times ₹1.74 lakh reflecting the state’s strong economic progress,” he said adding Telangana’s Gross State Value Added is primarily driven by sector which contributes 66.3%, agriculture and allied sectors 17.3% and industrial sector 16.4%.
The Deputy Chief Minister said the policies of the Government were carefully designed to reflect the values and aspirations of the people aiming at empowerment of farmers, entrepreneurs, students, women and other sections. It was the shared responsibility of the members to rise above differences, engage in constructive dialogue and work together to achieve the outcomes.
Published – March 19, 2025 12:55 pm IST
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