HYDERABAD: Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu presented the Telangana State Budget for the financial year 2025-26 in the Assembly on Wednesday, unveiling a ₹3,04,000 crore outlay.
The budget, designed to accelerate economic growth while prioritizing welfare, reflects the government’s commitment to inclusive development, infrastructure expansion, and social security measures. With a vision to strengthen Telangana’s financial and social fabric, the government has allocated significant resources to key sectors, ensuring that the benefits of growth reach every section of society.
The budget comes at a time when Telangana’s economy is on a steady upward trajectory, demonstrating resilience in the face of global economic fluctuations. For the financial year 2024-25, the state’s Gross State Domestic Product (GSDP) stands at ₹16,12,579 crore, reflecting a 10.1% growth rate, surpassing the national GDP growth rate of 9.9%. Telangana’s per capita income has risen to ₹3,79,751, which is ₹1,74,172 higher than the national average of ₹2,05,579, underscoring the state’s economic strength and improved living standards.
Agriculture and allied sectors continue to play a crucial role in Telangana’s economy, providing employment to 42.7% of the workforce, even though their contribution to the Gross State Value Added (GSVA) remains 17.3%. The industrial sector accounts for 16.4% of the GSVA, while the services sector remains the dominant driver of economic growth, contributing 66.3%. The government has placed special emphasis on agriculture, irrigation, infrastructure, education, healthcare, and social welfare, ensuring that resources are directed toward sectors that yield long-term benefits.
A significant portion of the budget has been earmarked for welfare programs under the Abhayahastam scheme, an umbrella initiative aimed at addressing the needs of Telangana’s most vulnerable populations. The Mahalakshmi Scheme, which provides free bus travel for women, has already facilitated 149.63 crore free trips, saving beneficiaries a total of ₹5,005.95 crore. Under the Gruha Jyothi Scheme, 50 lakh families are receiving free electricity for up to 200 units, with an allocation of ₹1,775.15 crore to ensure its smooth implementation. The Indiramma Housing Scheme, which grants home ownership in the name of women, has seen the sanctioning of 4.5 lakh houses, with a total investment of ₹22,500 crore.
The budget also demonstrates the government’s commitment to Telangana’s farmers, with a historic farm loan waiver of ₹20,616.89 crore benefiting 25.35 lakh farmers. Under the Rythu Bharosa scheme, the government is providing ₹12,000 per acre annually to support agricultural investments, backed by an allocation of ₹18,000 crore. A further ₹500 per quintal bonus for fine rice procurement has resulted in a significant increase in fine rice cultivation from 25 lakh acres to 40 lakh acres, ensuring better returns for farmers.
Education and youth empowerment remain key priorities, with the government sanctioning ₹11,600 crore for the establishment of 58 Young India Integrated Residential Schools, ensuring high-quality education for students from underprivileged backgrounds. The Young India Skill University, being developed on 150 acres in Mucharla, is set to create 30,000 jobs annually, bridging the gap between academic knowledge and industry demands. The Rajiv Yuva Vikasam scheme, launched with ₹6,000 crore, aims to provide self-employment opportunities for SC, ST, BC, and minority youth, offering financial assistance of up to ₹4 lakh per beneficiary.
Urban development and infrastructure have been given a major boost, with Hyderabad’s transformation into a global city being a key focus. The government has launched the Musi Riverfront Development Project, alongside Hyderabad’s H-CITI plan, which includes the construction of 31 flyovers, 17 underpasses, and 10 road expansion projects at an estimated cost of ₹7,032 crore. Under the Future City initiative, Telangana is developing India’s first Net-Zero city, spanning 765 sq. km, featuring AI City, Pharma Hub, Sports City, and a Clean Energy Innovation Zone.
Telangana’s industrial and IT sectors continue to attract major investments, with ₹1.78 lakh crore secured in agreements with 16 global companies during the World Economic Forum summit in Davos. The Mega Master Plan 2050 aims to expand industrial clusters across the state, ensuring that economic growth is not limited to Hyderabad. The government is also developing Greenfield Pharma Clusters in Ranga Reddy and Mahbubnagar, strengthening Telangana’s position as a global pharmaceutical hub.
The energy sector has received significant attention, with the Clean & Green Energy Policy 2025 targeting 40,000 MW of renewable energy by 2035. To improve grid stability, the government is setting up a 250 MW Battery Energy Storage System in Shankarpally. Meanwhile, the Yadadri Thermal Power Plant (YTPS), which faced delays due to past administrative hurdles, has commenced power generation in two units, with the remaining three units set to be operational by May 2025. The Electricity Ambulance Service, a first-of-its-kind initiative in India, has been launched in Hyderabad to address power disruptions swiftly.
In the irrigation sector, the government is prioritizing the Udaya Samudram–Brahmana Velamala Lift Irrigation Project, which will irrigate one lakh acres and provide drinking water to 107 fluoride-affected villages. Additionally, Bunadigani Canal restoration is being undertaken with an allocation of ₹266.65 crore, enhancing water distribution in Yadadri district.
The government’s focus on women’s empowerment is reflected in the Indira Mahila Shakti Mission, under which ₹21,632 crore in interest-free loans have been provided to SHGs, facilitating the establishment of 2.25 lakh micro-enterprises. Special initiatives such as loan insurance schemes for SHG members, the operation of women-run petrol stations, and the leasing of 600 buses to self-help groups further reinforce the government’s commitment to economic empowerment.
Sports and culture also receive substantial support, with the Young India Sports University being established alongside a state-of-the-art Sports Hub in Future City. The government has honored cricketer Mohammed Siraj, boxer Nikhat Zareen, and para-athlete Deepthi Jeevanji with DSP posts and financial incentives, recognizing their contributions to sports. The official state anthem “Jaya Jaya Hey Telangana” has been adopted, and the Gaddar Film Awards have been introduced to celebrate artistic excellence.
With a record allocation of ₹40,232 crore for Scheduled Caste Welfare, ₹17,169 crore for Scheduled Tribe Welfare, ₹ 3,591 crore for the Minority Welfare Department, ₹23,373 crore for irrigation, ₹31,605 crore for rural development, and ₹12,393 crore for healthcare, the Telangana government has reinforced its commitment to inclusive growth and social welfare. The ₹3.04 lakh crore budget lays a comprehensive roadmap for the state’s future, ensuring that economic prosperity and welfare initiatives go hand in hand, setting Telangana on course to become a trillion-dollar economy in the coming decades.
