Telangana Budget 2025-26: A Comprehensive Overview
Updated: 20-03-2025 at 3:32 PM
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Finance Minister Mallu Bhatti Vikramarka delivered Telangana's 2025-26 annual budget to the State Assembly on 19th March 2025. The budget diverts ₹3,04,965 crore toward developing the state by prioritising its welfare needs for different sectors.
Budget Overview
| Category | Amount (₹ Crore) |
|---|---|
| Total Budget Outlay | 3,04,965 |
| Revenue Expenditure | 2,26,982 |
| Capital Expenditure | 36,504 |
Sector-Wise Allocations
The Telangana Budget 2025-26 allocates substantial funds across key sectors to drive economic growth and social development. Each sector receives targeted investments to enhance infrastructure, welfare, education, healthcare, and agriculture, ensuring balanced progress across urban and rural areas.
Education
Culture and Education received an allocation of ₹23,008 crore in the state budget to strengthen educational facilities and educational standards. The cosmetic fees for Gurukuls and Kasturba Gandhi Girls' Schools along with welfare hostels have seen their charges surge by 200% while diet fees have risen by 40% throughout these institutions. All educational facilities part of the government receive their electricity power without cost.
Agriculture
The agricultural sector received funding of Rs 24,439 crore under the budget. Through the Rythu Bharosa Scheme, each farmer obtains ₹12,000 in support every year per acre of land as well as extra incentives of ₹500 for each fine quality paddy quantity they provide to government procurement.
Panchayati Raj And Rural Development
The Panchayati Raj and Rural Development sector received ₹31,605 crore from the state budget to reinforce both rural infrastructure development and governance systems.
Health, Medical & Family Welfare
A budget increase of 8.06% resulted in the health sector obtaining ₹12,393 crore this year. The budgeted funds are intended to advance state healthcare facilities together with their services throughout the region.
Energy
The budget for the Energy Department amounts to ₹21,221 crore indicating that the state prioritises energy security and power infrastructure development.
Welfare Of Scheduled Castes (SCs) and Scheduled Tribes (STs)
The government demonstrates strong dedication to inclusive policies through its allocations of ₹40,232 crore and ₹17,169 crore intended for the welfare of SCs along with STs.
Also Read: Major Announcements In Karnataka Budget 2025
Major Initiatives
The Telangana Budget 2025-26 introduces several major initiatives aimed at boosting economic growth, social welfare, and infrastructure development. These initiatives focus on enhancing public services, supporting farmers, improving education and healthcare, and fostering industrial expansion in the state.
Mega Master Plan 2050
A Mega Master Plan 2050 emerged from the government to drive industrial decentralisation and speed up industrial development. The government plans to create new industrial clusters that will be located in Ranga Reddy district and Mahbubnagar district territory.
HICITI Initiative
Under the Hyderabad Integrated Connectivity and Infrastructure Transformation Initiative (HICITI) the government will build 31 flyovers together with 17 underpasses at a budget of ₹7,032 crore to reduce urban congestion.
Information Technology Sector
Information Technology has obtained a budgetary allocation of ₹774 crore under the financial plan. From 2050 onward Hyderabad will accelerate industrial growth through a Mega Master Plan 2050 which focuses on decentralisation.
Real Estate and Infrastructure
Real estate sector growth in Hyderabad will significantly increase because the budget has activated residential as well as commercial space absorption. The budget supports the construction of infrastructure and affordable housing alongside sustainable city projects that will transform Hyderabad into an international centre for high-value industries.
Economic Indicators
The Gross State Domestic Product of Telangana grew by 10.1% to reach ₹16,12,579 crore when evaluated at present market values in 2024-25. Revenue surplus predictions for the budget amount to ₹2,738 crore whereas revenue receipts are expected to reach ₹2,29,720 crore. The government expects public debt outstanding to reach ₹5,04,814 crore during FY26 with limits following the Fiscal Responsibility and Budgetary Management (FRBM) Act while maintaining a 28.1% ratio to GSDP.
Conclusion
The Telangana Budget 2025-26 presents an integrated development strategy which merges social welfare programmes with infrastructure developments and industrial progress. The budgeted funds across different sectors support comprehensive growth while transforming Telangana into a progressive region with strong economic performance metrics.
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