Telangana Government Set to Present Record Budget of Rs 3.15 Lakh Crore for 2025-26 Amid Financial Strain

Hyderabad: The Telangana government is preparing to present its most substantial budget yet for the 2025-26 financial year, with an outlay of Rs 3.15 lakh crore to Rs 3.2 lakh crore. This proposed budget represents a significant increase from last year’s Rs 2.91 lakh crore, making it the highest allocation in the state’s history.

Special Session to Address BC Reservations and SC Categorization Bills

Ahead of the regular budget session, a special session of the Telangana State Assembly is expected to take place in the first week of March to pass crucial bills related to BC (Backward Classes) reservations and SC (Scheduled Castes) categorization. These bills are central to the state’s ongoing efforts to implement social welfare policies for marginalized communities.

Also Read: Champions Trophy: Kammaaal Kaardi! Cricket World Hails Afghanistan for Stunning Win Over England

Budget Session to Begin in March with Focus on Welfare

The formal budget session is scheduled to begin in the third week of March, following the Governor’s address. The session is expected to conclude before March 28, keeping in mind the upcoming Ramzan, Ugadi, and other festivals.

Finance Minister Mallu Bhatti Vikramark is actively conducting department-wise reviews, gathering expenditure estimates, and reviewing scheme implementation details in preparation for the session.

Welfare Schemes and Development Priorities

Sources indicate that the budget will focus heavily on welfare schemes and development programs, with particular attention paid to the electoral promises made by the Congress government that remain unfulfilled in its first year of administration.

Among the promises, key initiatives such as the free bus service for women, enhanced Rythu Bharosa, crop loan waiver, LPG subsidy, and free power for women up to 200 units have only seen partial implementation, with several other welfare schemes still in limbo.

Numerous programs, including monthly honorariums to women, financial aid for the unemployed, enhanced social security pensions, and the Indiramma housing project, have not yet been rolled out and are likely to be prioritized in the 2025-26 budget. Agriculture, irrigation, infrastructure, and welfare are expected to be major focus areas.

Financial Challenges Amid Rising Debt and Revenue Deficits

Despite the ambitious budget proposals, the Congress government faces significant challenges in managing the state’s finances. Telangana is grappling with rising debt, stagnant revenue inflows, and a growing fiscal deficit. Current revenue receipts stand at Rs 1,23,815 crore, which is just 55.96% of the budget estimate of Rs 2,21,242 crore. This represents a sharp decline from last year’s 63.2%.

In terms of State Own Tax Revenue (SOTR), the state has achieved 68.6% of its annual target as of January this year, compared to 72.42% last year. Telangana has also reported a substantial revenue deficit of Rs 26,050 crore, which contrasts with a projected revenue surplus of Rs 292 crore.

Balancing Ambitious Plans with Financial Realities

The Telangana government now faces the difficult task of balancing its ambitious spending plans with the reality of dwindling finances. With mounting financial challenges, including sluggish tax collections and financial mismanagement, the government will have to work to ensure that its proposed welfare initiatives are not overshadowed by the growing deficit and revenue shortfall.

The budget presentation will be closely watched, as it will reflect how the Congress government plans to navigate the financial constraints while fulfilling its promises to the people of Telangana.