Telangana budget 2026-27 focuses on welfare and growth
Hyderabad: Telangana Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu presented the Telangana budget of Rs.3,24,234 crore for 2026-27, outlining a welfare-driven growth strategy backed by strong economic indicators.
The budget proposed Rs.2,34,406 crore as revenue expenditure and Rs.47,267 crore as capital expenditure. It aimed to balance welfare commitments with infrastructure creation. The government said it ensured fiscal discipline while expanding social schemes.
The Minister stated that the Telangana budget addressed financial pressures from past borrowings. At the same time, it focused on administrative stability and better use of public funds. The government emphasised development alongside social welfare delivery.
Telangana’s economic performance remained a key highlight. The State’s GSDP for 2025-26 stood at Rs.17,82,198 crore. It recorded a growth rate of 10.7 per cent, higher than the national rate of 8 per cent. The State contributed nearly 5 per cent to India’s GDP.
Per capita income reached Rs.4,18,931, which was much higher than the national average. This reflected stronger income levels and improved living standards across the State.
The government also set long-term goals. It aimed to transform Telangana into a $1 trillion economy by 2034. It further targeted a $3 trillion economy by 2047 with sector-wise strategies.
Fiscal reforms shape Telangana budget outlook
Fiscal management formed a major part of the Telangana budget. The government restructured high-interest loans worth Rs.27,988 crore. As a result, repayment burden between 2025-26 and 2031-32 dropped sharply.
Repayments reduced from Rs.34,058 crore to Rs.11,915 crore. This eased pressure on State finances. Meanwhile, funds under Centrally Sponsored Schemes increased to Rs.7,072 crore. Earlier, they stood at Rs.4,826 crore in 2021-22.
The government cleared pending dues of nearly Rs.3,000 crore. In addition, it secured investment commitments worth Rs.5,75,000 crore during the Telangana Rising Global Summit. These investments are expected to boost jobs and industrial growth.
Sector-wise allocations remained significant. Agriculture received Rs.23,179 crore, while irrigation got Rs.22,615 crore. Panchayat Raj and rural development were allocated Rs.33,688 crore to strengthen rural infrastructure.
Education received Rs.26,674 crore, and the energy sector got Rs.21,285 crore. Healthcare was allocated Rs.13,679 crore to expand medical services. Social welfare spending included allocations for backward classes, scheduled castes, scheduled tribes and minorities.
The government continued flagship schemes under the Abhaya Hastham framework. These included free bus travel for women, subsidised gas cylinders and free electricity up to 200 units. Women completed over 269 crore free bus journeys, saving Rs.9,222 crore.
A key announcement was the Indiramma Family Life Insurance Scheme. It will provide Rs.5 lakh coverage to over 1 crore families. In education, the government introduced a breakfast scheme and extended midday meals to Intermediate students.
Infrastructure projects also remained a focus. These included Bharat Future City, industrial corridors and road network expansion. Urban development in Hyderabad received priority.
The government said it filled 67,763 jobs and planned further employment initiatives. Skill development and overseas employment support will drive future job creation.
Overall, the Telangana budget presented a welfare-focused roadmap with strong economic growth and infrastructure expansion.
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