Hyderabad, March 19, 2025 — The Telangana Cabinet approved the state’s annual budget for the financial year 2025-26 on Wednesday, with a record outlay of ₹3,04,965 crores, prioritizing infrastructure development and welfare programs. Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the finance portfolio, emphasized the government’s commitment to balancing growth and social equity while ensuring fiscal discipline.
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Table of Contents
Key Highlights of Telangana Budget 2025-26
- Total Outlay: ₹3,04,965 crores (16% increase from 2024-25).
- Debt Repayment: ₹19,200 crores allocated to manage liabilities.
- Fiscal Deficit: Maintained at 3% of GSDP (Gross State Domestic Product).
- Revenue Surplus: Estimated at ₹500 crores, reflecting cautious fiscal planning.
Focus on Development and Welfare
Deputy CM Bhatti stated, “This budget is a blueprint for Telangana’s progress. We have allocated funds to uplift rural and urban infrastructure, healthcare, education, and agriculture while safeguarding welfare schemes.”
Key Sector-Wise Allocations:
- Agriculture: ₹28,000 crores for farm loan waivers, irrigation projects, and Rythu Bandhu support.
- Healthcare: ₹15,200 crores to upgrade hospitals and expand Aarogyasri coverage.
- Education: ₹12,500 crores for new schools, skill development, and digital classrooms.
- Infrastructure: ₹42,000 crores for highways, metro expansions, and industrial corridors.
Debt Management and Fiscal Discipline
The government aims to balance ambitious spending with fiscal prudence:
- Debt Repayment: A sharp rise to ₹19,200 crores (up 12% from 2024-25) to reduce liabilities.
- Fiscal Deficit: Capped at 3% of GSDP, aligning with the Fiscal Responsibility and Budget Management (FRBM) Act.
- Revenue Surplus: Despite reduced central grants, Telangana projects a ₹500 crore surplus through improved tax collection.
Analysts applaud the state’s strategy to limit borrowing while funding growth-critical sectors.
Infrastructure Push for Long-Term Growth
Major projects under the budget include:
- Hyderabad-Nagpur Industrial Corridor: ₹8,000 crores allocated.
- Metro Rail Expansion: ₹5,200 crores for new routes in Warangal and Greater Hyderabad.
- Green Energy: ₹3,500 crores for solar parks and EV infrastructure.
Welfare Schemes Get a Boost
The government continues its focus on social security:
- Dalit Bandhu: ₹12,000 crores to support entrepreneurship among SC/ST communities.
- KCR Kit: ₹1,200 crores for maternal healthcare kits.
- Pension Schemes: ₹9,800 crores for elderly, widows, and disabled citizens.
Challenges Ahead
While the budget emphasizes growth, economists urge caution:
- Debt Sustainability: Rising repayments could strain future budgets if revenue growth slows.
- Central Grants: Dependence on central funds remains a risk amid fluctuating allocations.
Public and Political Reactions
- Opposition Criticism: BJP and Congress leaders allege “populist spending” ahead of 2026 elections.
- Citizen Response: Farmers and self-help groups welcome enhanced welfare support.
Telangana’s 2025-26 budget strikes a calculated balance between aggressive development goals and fiscal responsibility. With infrastructure and welfare at its core, the state aims to cement its position as a growth leader in southern India. Deputy CM Bhatti’s assertion, “This is a budget for the people and the future,” underscores its dual focus on immediate needs and long-term prosperity.
Reported by Munsif News