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Telangana government tables ₹3.04 lakh-crore budget with focus on welfare, industrial growth
Finance minister announced a “Mega Master Plan 2050” for industrial development not just in IT hub Hyderabad but across the Telugu state
Telangana finance minister Mallu Bhatti Vikramarka on Wednesday presented a ₹3.04 lakh crore state budget for 2025-26 in the assembly, announcing a “Mega Master Plan 2050” for industrial development not just in IT hub Hyderabad but across the Telugu state.
Tabling the financial document in the assembly, Vikramarka, who is also the deputy chief minister, proposed a total expenditure of ₹3,04,965 crore for the upcoming financial year, with revenue expenditure of ₹2,26,982 crore and capital expenditure of ₹36,504 crore for FY26. Rest of the spending is loans and advances and capital disbursements (repayment of loans), which the state has not counted towards capex.
The fiscal deficit is estimated to be around 3% of the Gross State Domestic Product (GSDP) of ₹17,96,491 crore in FY26, while the net deficit is pegged at ₹498.45 crore.
The budget, however, estimates that there will be a revenue surplus of ₹2,738 crore with revenue receipts projected at ₹2,29,720 crore. On public debt outstanding that falls under the limits of Fiscal Responsibility and Budgetary Management (FRBM) Act, the minister projected it at ₹5,04,814 crore in FY26, as against the revised estimates of ₹4,51,203 crore, accounting for 28.1% of the GSDP.
“Inspired by secular values, the Congress government has designed this budget for equitable distribution of resources to all classes of society and to establish a system free from inequalities,” Vikramarka said in his budget speech.
He also announced a “Mega Master Plan 2050”, which aims for decentralising industrial development, ensuring Hyderabad is not the sole hub of industrial progress and that all regions of the state experience balanced and sustainable growth.
As part of the initiative, the government will establish sector-specific industrial clusters across Telangana in key industries including IT, pharmaceuticals, healthcare, food processing, sports, automobiles, garments, metalware, handlooms, and jewellery manufacturing.
“These clusters will drive economic expansion, job creation, and infrastructure development throughout the state,” the minister said. “We are formulating a master plan focused on technological advancement, transportation expansion, infrastructure development, and environmental conservation.”
The government is also planning to develop Future City as a growth centre and as part of the initiative, a state-of-the-art AI city spread across 200 acres is being developed to establish it as a global hub for AI innovation and enterprise.
He said the government was committed to implementing all its “six poll guarantees” — comprising schemes such as Rythu Bharosa, Mahalakshmi, Gruha Jyothi, Indiramma Indlu, Yuva Vikasam and Cheyutha — adding that substantial allocations have been made for the same.
“The plans presented in this budget are not merely financial allocations but serve as roadmaps for equitable development, economic stability, and social justice. Our government is dedicated to advancing progress through a comprehensive approach that integrates social justice, development, and welfare,” he added.
In terms of sector-wise budgetary allocations, the government earmarked ₹40,232 crore for the welfare of scheduled castes (SCs) and ₹17,169 crore for scheduled tribes (STs), ₹23,108 crore for education, ₹24,439 crore for agriculture, ₹31,605 crore for panchayati raj and rural development, ₹12,393 crore for health, medical and family welfare, while the energy department has been allocated ₹21,221 crore.
While chief minister A Revanth Reddy called the state budget as “people’s budget”, Union minister of coal and mines and Telangana BJP president G Kishan Reddy termed it as an “insult to the people of Telangana”.
“Today’s budget announced by the Telangana government clearly shows how the Congress has continued to mislead the people of the state with cooked up numbers and gimmicks. After being in the state government for 15 months, they completely ignored the implementation of six guarantees and 420 promises,” he said.
“In its desperation to raise revenue, only thing the Telangana government is able to promote is the excess consumption of liquor. The government has given a raw deal to every category in the worst way, including farmers, youth, students, women, elderly people, and employees. The BJP condemns the budget presented by the government as it insults the people of Telangana and ignores public welfare and state development,” he added.
